Binance.com was providing services in the US via VPN, says CFTC chairman
Rostin Behnam explained the main reason why the CFTC agency sued Binance Exchange.
Binance.com is a global crypto exchange and the services of this exchange are not available in some countries, e.g the US, and the UK. In US-like countries, Binance provides services via independent subsidiaries. On 27 March 2023, The United States Commodity Futures Trading Commission (CFTC) announced charges against Binance’s exchange non-cooperation with the agency’s investigation & unregistered derivatives crypto service in the US jurisdiction.
At that time, Binance CEO Changpeng Zhao confirmed that Binance exchange always followed all the rules & regulations to ensure compliance with the regulatory bodies corresponding to the services available in countries.
On 13 April 2023, Bloomberg reported that CFTC chairman Rostin Behnam talked about the CFTC vs Binance case, during a fireside chat that took place at the DeCenter Spring Conference at Princeton University.
CFTC chairman said that Binance exchange intentionally violated US laws because they are aware that trading service providers should be registered with the US regulators but they were providing services in the US via the use of Virtual Private Network (VPN) services.
Binance services in mainland of China
In late March 2023, A CNBC report claimed that many people from mainland China were able to trade crypto assets on Binance despite a blanket ban in China, imposed by the People Bank of China in late 2021.
The report also alleged that some of the Binance employees helped the Chinese customers to bypass the security check & use of fake identity to access the Binance services.
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