Binance Discussing Registering with the CFTC, says its Policy Advisor
With crypto assets being such “a new phenomenon,” Max Baucus said, “it’s only appropriate the regulatory agencies do their job.”
Binance weighs whether to register with the US's financial regulator, shared Max Baucus, a former senator tapped as a policy adviser by the leading spot cryptocurrency exchange.
As we reported Friday, Commodity Futures Trading Commission investigates whether Binance allowed Americans to trade derivatives on its platform, violating the US rules. The exchange is not accused of misconduct.
A day after the reports, in an interview with Bloomberg, Baucus said, “I think they’re moving in that direction,” when asked whether the company plans to register with the CFTC. “That’s a policy decision that we’re discussing, and it’s a business judgment,” he said.
Binance announced the appointment of Baucus just a day before the news of the CFTC probe broke out. The market, however, remains unaffected by the report as Bitcoin made a new ATH above $60,000 on Saturday.
With crypto-assets being such “a new phenomenon” which is really “explosive,” Baucus said, “it’s only appropriate the regulatory agencies do their job,” adding that the agency is looking at a lot of other exchanges “because it's the right thing to do.”
He further shared his reason for joining Binance, which involves “exciting new technology,” which is part of the future, adding, “My job is to help them develop their business in a way that will expand, but also will be following regulations.”
In an AMA on the Clubhouse on Friday, Binance CEO Changpeng Zhao clarified that they maintain “very collaborative relationships with regulators around the world” and that the exchange has “the strongest KYC/AML program in the industry.” “I believe we have the most advanced US person detection industry of any company in the world,” CZ said.
Last year, BitMEX was charged by CFTC for illegally operating a cryptocurrency derivatives trading platform and anti-Money laundering violations.
In the light of the scrutiny, centralized crypto exchanges have been facing; the crypto industry has been calling for “working and liquid decentralized derivatives exchange,” which continues to build the case for decentralized finance (DeFi).