BREAKING: The value of Bitcoin and a raft of other cryptocurrencies fell briefly today after it was revealed a US financial authority – the Commodity Futures Trading Commission (CFTC) – was investigating the world’s largest trading platform.
The CFTC is understood to be examining if the Binance exchange allowed the purchase and sale of derivatives by US residents – a grey area as Binance isn’t registered with the agency.
Only yesterday, Binance announced it had appointed former US Senator and Ambassador to China, Max Baucus, to build relations with US authorities and regulators.
Binance has been historically robust on its dealings with US citizens, blocking US-registered addresses from its site. However, it appears the CFTC is looking at potential breaches and bypasses.
The commission has been clamping down on exchanges and crypto platforms over the last year.
As news of the investigation broke, Bitcoin’s value stumbled dramatically, and was soon followed by a raft of altcoins including BNB – Binance’s own coin which plummeted some 16 per cent.
Binance CEO Changpeng Zhao is yet to make an official statement, but he did offer a brief tweet in response.
…more to follow.