Connect with us

Altcoins

CFTC orders crypto firm to pay $250,000 over registration violations

CFTC orders crypto firm to pay 0,000 over registration violations

CFTC’s penalty against bZeroX, its founders and successor firm Ooki DAO relate to illegal…

The post CFTC orders crypto firm to pay $250,000 over registration violations appeared first on CoinJournal.

CFTC orders crypto firm to pay 0,000 over registration violations
  • CFTC’s penalty against bZeroX, its founders and successor firm Ooki DAO relate to illegal offering of off-exchange crypto trading and for breaching the Bank Secrecy Act.
  • Ooki DAO operated renamed bZeroX protocol.
  • Regulator says actions are aimed at protecting US retail investors amid crypto’s rapidly growing market.

The Commodity Futures Trading Commission (CFTC) imposed a $250,000 fine on crypto lending platform bZeroX and issued it a cease-and-desist order against it for illegal operations that violated the Commodity Exchange Act, CFTC regulations and the Bank Secrecy Act.

The penalty and orders were also filed and settled against bZeroX founders Tom Bean and Kyle Kistner, the agency said in a press release.

These actions are part of the CFTC’s broader efforts to protect US customers in a rapidly evolving decentralised finance environment,” Gretchen Lowe, the acting Director of Enforcement at CFTC said.

bZeroX violated registration rules 

According to the regulator, the crypto firm operated without the requisite registrations and illegally offered digital assets-related leveraged and margined commodity transactions. As such, the platform had offered services that can only be undertaken by a properly registered futures commission merchant (FCM).

Margined, leveraged, or financed digital asset trading offered to retail U.S. customers must occur on properly registered and regulated exchanges in accordance with all applicable laws and regulations.  These requirements apply equally to entities with more traditional business structures as well as to DAOs,” Lowe added.

CFTC also accused bZeroX of violating the Bank Secrecy Act by not adopting and implementing a KYC programme as required of FCMs.

The complaints were also levelled against Ooki DAO, the decentralised autonomous organisation that succeeded bZeroX.

According to CFTC, the orders related to the development, deployment and marketing of the blockchain-based software bZx Protocol – from around 1 June, 2019 to 23 August, 2021 and when it changed to Ooki DAO.

The regulator thus said it had filed a civil enforcement action against Ooki DAO, seeking a trading ban, disgorgement, monetary penalties and injunctions against it.

The post CFTC orders crypto firm to pay $250,000 over registration violations appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

Continue Reading
Advertisement

Altcoins

Binance re-enters the Japanese market with purchase of SEBC exchange

Crypto exchange Binance has reentered the Japanese market after acquiring a 100% stake in Sakura Exchange BitCoin (SEBC), a regulated cryptocurrency exchange in Japan. KEY TAKEAWAYS SEBC is a Japan Financial Services Agency (JFSA) regulated entity. By acquiring SEBC, Binance aims to offer Japanese-regulated services through the exchange. At the time of the Binance acquisition, […]

The post Binance re-enters the Japanese market with purchase of SEBC exchange appeared first on CoinJournal.

Crypto exchange Binance has reentered the Japanese market after acquiring a 100% stake in Sakura Exchange BitCoin (SEBC), a regulated cryptocurrency exchange in Japan.

KEY TAKEAWAYS

  • SEBC is a Japan Financial Services Agency (JFSA) regulated entity.
  • By acquiring SEBC, Binance aims to offer Japanese-regulated services through the exchange.
  • At the time of the Binance acquisition, the Tokyo-based exchange supported 11 trading pairs; mainly cryptocurrency-Japanese Yuan pairs.

Despite the tense situation in the crypto market following the collapse of FTX which seems to be taking other crypto entities like BlockFi down with it, Binance seems to be spreading its wing further and further. The SEBC acquisition comes weeks after Binance pulled out of its planned FTX rescue plan citing issues with FTX’s financial book.

Expanding into Japan

In the past few years, Binance has been expanding its business across various countries as it stamps its authority within the crypto space. So far, the crypto exchange has secured regulatory approvals in France, Italy, Spain, Bahrain, Abu Dhabi, Dubai, New Zealand, Kazakhstan, Poland, Lithuania, and Cyprus.

The acquisition of Sakura Exchange BitCoin marks the exchange’s first entry into East Asia. Most importantly, SEBC is already a regulated entity which means Binance will be able to offer regulated services in Japan, which is a major economy in East Asia.

In a press release announcing the acquisition of the Japanese exchange, the general manager of Binance Japan, Takeshi Chino, said:

“The Japanese market will play a key role in the future of cryptocurrency adoption. As one of the world’s leading economies with a highly-developed tech ecosystem, it’s already poised for strong blockchain uptake. We will actively work with regulators to develop our combined exchange in a compliant way for local users. We are eager to help Japan take a leading role in crypto.” 

At the time of the acquisition, SEBC offered customer consultation services and crypto brokerage services supporting 11 crypto-Japanese Yuan trading pairs. The trading pairs include BTC/JPY, ETH/JPY, BCH/JPY, XRP/JPY, LTC/JPY, ETC/JPY, XEM/JPY, MONA/JPY, ADA/JPY, XYM/JPY, and COT/JPY.

The post Binance re-enters the Japanese market with purchase of SEBC exchange appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

Continue Reading
Advertisement

Top Posts

We need your support.

Enjoying our free service? Please help us by clicking the ads on our website. They are 100% safe. Thank you!