Bitcoin prices are on the rise again as the world’s largest cryptocurrency trading platform, Binance, faces legal action by US authorities for violating money laundering laws. The CEO of Binance, Zhao Changpeng, is the subject of the lawsuit filed by the US Commodity Futures Trading Commission (CFTC).
Bitcoin’s value has climbed to $27,000 as investors anticipate a significant shift in the market following the legal action against Binance. However, the price of Bitcoin initially dropped by 3.13% to $27,086.62 in response to the news.
The CFTC alleges that Binance violated US federal law relating to commodity markets by not registering with the commission as a derivatives brokerage. Furthermore, Binance is accused of assisting clients to avoid compliance by advising them to use virtual private networks (VPNs) to conceal their whereabouts.
These allegations have serious implications for Binance, which is widely regarded as the world’s largest cryptocurrency exchange, with a daily trading volume of $44 billion. The lawsuit could significantly impact Binance’s operations and reputation, as it faces accusations of violating laws governing money laundering and terrorist financing.
The legal action by the US authorities is likely to trigger significant regulatory scrutiny across the cryptocurrency industry. It also highlights the need for greater regulation of the sector, which has often been seen as operating in a regulatory grey area.