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INTERNATIONAL BUSINESS TIMES NEWSLETTER SIGNUP My account Log Out Oct 25, 11:32 AM EDT World U.S. Economy & Markets Companies Technology Digital Life Culture Sports Opinion NEWSLETTER My account Log Out US Edition World U.S. Economy & Markets Companies Technology Digital Life Culture Sports Opinion Listings & More Spotlight Glossary Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States NEWSLETTER Follow Us Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States Crypto Crypto Business Binance Asks Court To Drop CFTC Lawsuit, Says Regulator Trying To Be A Global Crypto Police By Nica Osorio @nicaIBTimes 10/25/23 AT 8:23 AM EDT Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Share on Flipboard Reuters KEY POINTS The CFTC filed a lawsuit against Binance over allegations of regulatory violations in March Binance Holdings and Binance (Services) Holdings are the two Irish units included in CFTC's case "It is designed to obscure the ownership, control and location of the Binance platform," the commission said Binance, the world's largest centralized crypto exchange platform by trading volume, has urged the Illinois court to drop a lawsuit filed by the U.S. Commodity Futures Trading Commission against it. The exchange accused the CFTC of trying to use a "trojan horse" to make itself function as a de facto global crypto police. "The CFTC relies on new and broad arguments that would allow it to regulate any activity in cryptocurrency (or other assets) related to a derivatives product anywhere on the globe," Binance said in a court filing Monday. "U.S. law governs domestically but does not control the world. Congress did not make the CFTC the world's derivatives police," it noted, adding that the CFTC's complaint "resorts to incendiary language" against the exchange and its founder and CEO Changpeng Zhao (CZ). In its court filing, Binance's lawyers argued the Irish units of the business should not be named as defendants in the lawsuit as they were located outside of the jurisdiction of the CFTC. Binance Holdings and Binance (Services) Holdings are the two Irish units of the crypto firm that were included in the commission's case. Binance said the court should "reject the agency's effort to expand its territorial reach beyond what is permitted by the law." The CFTC has alleged that CZ and Binance knowingly disregarded provisions of the U.S. Commodity Exchange Act (CEA) and engaged in a calculated strategy of regulatory arbitrage to benefit commercially. "Binance's reliance on a maze of corporate entities to operate the Binance platform is deliberate," the U.S. watchdog earlier claimed, adding that "It is designed to obscure the ownership, control and location of the Binance platform." "The agency seeks in this action to regulate foreign individuals and corporations that reside and operate outside the United States while ignoring the carefully delineated provisions in the Commodity Exchange Act setting forth narrow exceptions to the fundamental legal principle that US law governs domestically but does not control the world," Binance's lawyers said. They argued the court "should reject the CFTC's effort to use its attack on the non-U.S. defendants in this case as a Trojan horse in order to achieve worldwide regulatory reach – which would have consequences far beyond this case and not intended by the U.S. Congress." The CFTC filed a lawsuit against Binance over allegations of regulatory violations in March. Read more Binance, Changpeng Zhao Could Be Facing New Trouble In Brazil For Alleged Fraudulent Management Binance Continues UK Operation But Won't Accept New Customers For Now Binance Launches New UK Domain Despite Previous Business Decision © Copyright IBTimes 2023. All rights reserved. Join the Discussion MOST READ IN Crypto 1 Shytoshi Kusama Teases Shib Army, Spills Plan For Doge-Killer LEASH 2 Web3 Companies Are Bringing The Best Of Web2 Along For The Ride 3 WLD Sinks After Worldcoin Moves To Replaces USDC With Native Crypto For Orb Operator Payment 4 Bitcoin Hits 7-Day Double Digit Gain As It Surges To Over $30K 5 FTX Wallets Move Over $10M In Crypto To Wintermute; What's Going On? NEWS World U.S. Economy & Markets Companies Technology Digital Life Culture Sports Opinion Featured Social Capital Glossary SMB Forum Spotlight Crypto K-Wave ABOUT About Us Contact us Advertise with us Terms & Conditions Privacy Policy Cookie Policy Editions United States Australia Brazil Colombia France Germany Indonesia India International Italy Editions Japan Nigeria Singapore South Africa South Korea Spain Mexico United Kingdom FOLLOW US Facebook Twitter LinkedIn Newsletter © Copyright 2023 IBTimes LLC. All Rights Reserved.
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