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Binance under CFTC investigation over trading activities: report
- edf13 6y agoAnd the price of BNB falls...
- paulpauper 6y agoSmall relative to how much it went up and relative to volatility
- agumonkey 6y agoand in line with the whole market, nothing like the XRP / SEC event.
- SubiculumCode 6y agoBinance.us is legal, right? When I tried to sign up for binance.com (not knowing better) it said that I needed to use binance.com instead. edit:removed unintentional coin shilling.
- bondarchuk 6y agoPlease don't shill coins here, even if you don't intend it that way.
- SubiculumCode 6y agoOh I suppose it did come off that way. My bad.
- josefresco 6y agoI signed up for Binance.US about two months back. It’s legit but a very low quality offering. Support is just massively overwhelmed and unresponsive. But most exchanges are overwhelmed now so it’s not that unusual.
- joshstrange 6y agoSame, I signed up when GME/DOGE both started spiking since I have DOGE laying around in a wallet. Getting coins into the exchange was easy enough and I can't comment on trying to withdraw but I can say the verification stuff is stupid-slow. I've provided info for all 3 tiers of verification and my account has sat in "pending" for over a month on the last step (first step was instant, second step took a week or so). I can always buy BTC on coinbase and transfer them over then convert them to USD/(T) but that's not ideal.
- savant_penguin 6y ago"The news comes just a day after Binance announced it has hired Max Baucus, who served decades in the U.S. Senate" The old game never changes
- throwaway4good 6y agoWith US "long-arm jurisdiction" comes US long-arm corruption where companies with no business in the US are forced to pay US lobbyists and US has-been politicians ...
- r00fus 6y agos/forced/coerced/ It's not like binance is exactly squeaky clean here. Long-arm jurisdiction means it impacts US citizens who are required to pay taxes regardless of residence. Couldn't Binance just reject doing business with US citizens and not worry?
- Tenoke 6y agoThat's exactly what it's doing (for .com), including monitoring for vpns and other ways that users try to circumvent. My guess is they'll be fine as I dont see what more they could've been doing and I really doubt they were allowing people they could tell are US citizens to use Binance.com given all the comments from Americans over the last months.
- ur-whale 6y ago>US citizens who are required to pay taxes regardless of residence. US citizens and also Eritreans (there was Libya at some point in time), so really, nothing to write home about.
- celticninja 6y agoWhich is worse. This guy is going work for a known shady organisation to help them manage regulations and set them up so that their shady dealings end up within the law, or they get a minor slap on the wrist, and they're allowed to continue doing business.
- ahelwer 6y agoMaybe triggered by the sheer quantity of tax returns filed this year listing Binance as the platform used to trade cryptocurrency. Binance has binance.us for Americans but the selection is much worse and it is trivial to continue using regular binance with a VPN.
- deleted 6y ago[deleted]
- thebean11 6y agoI don't think you'd normally report the exchange used to trade on your tax return, just the transactions themselves. They can definitely make assumptions, though, when you report you sold XYZ coin that's not traded on any US-regulated exchanges.
- mszcz 6y agoI never truly understood that - prohibiting companies outside of US from getting American customers. If the US govt doesn't want that to occur maybe they should police their citizens instead and see how that goes? I mean, an American citizen signs up for a service that he's forbidden from using and somehow that's the company's (that's offering that service) fault? Looks to me like trying to pass off doing your bidding to others.
- sakopov 6y agoAFAIK, binance.com still allows logins from the US (if you have an old account from a few years back), you just can't trade in it (supposedly). However, you can transfer funds out of the account. I had some coins stashed away on my binance.com wallets which I ended up transferring to binance.us and they sent me an email telling me that my binance.com account will be disabled after a 2 week grace period because I'm accessing it from the US. It's been more than a month now and I can still log into it. It seems that Binance took a more lax approach to this than other exchanges in the past which is biting them now.
- _rtld_global_ro 6y agoIt's not the case for me, I can login but my funds are a lost cause I'd suggest you transfer them out while you still can. On a hindsight I have no idea why I'd used it, it shady as hell I hope US sue them to oblivion but I doubt it would happen in a meaningful way. (rant)
- elliekelly 6y ago> but my funds are a lost cause Can you explain what you mean? Do they not even appear in your account when you log in? Or are you for some reason prevented from transferring them?
- _rtld_global_ro 6y agoIt says I'm from US, they're not serving US customers, and I must identify myself as a non-US person, or I won't be able to transfer any funds at all. See this popup notice upon login: ``` Service notice Dear user, as we perform periodic sweeps of our existing controls, we recognize that you are trying to access Binance from a US IP address. Please note that as per our Terms of Use, we are unable to service US persons. If you are a US resident or citizen, please register for an account at our partner platform, Binance.US, where you can experience the same industry-leading trading technology as available on Binance. If you are not a US person, please complete Identity Verification to prevent any restrictions to your account. We thank you for your continued support and apologise for any inconvenience caused. ``` IMO this is just a terrible and shameless excuse to take customers money away, I'm surprised nobody have taken action towards them.
- jcpham2 6y agoThis is unsurprising. They'll pay a fine.
- paulpauper 6y agothat should not be hard. they can pay from one of the presumably thousands of accounts frozen and money/crypto stolen https://www.reddit.com/r/CryptoCurrency/comments/lye4n5/binance_extortion/ https://www.reddit.com/r/CryptoCurrency/comments/lye4n5/bina...
- freebuju 6y agoCrypto subs on reddit are not exactly famous for being trustworthy sources
- Tenoke 6y agoFor what? They've went above and beyond to prevent US citizens to trade with their main exchange and to only leave a gimped version in the US.
- paulpauper 6y agomaybe binance should be investigated for theft https://www.reddit.com/r/CryptoCurrency/comments/lye4n5/binance_extortion/ https://www.reddit.com/r/CryptoCurrency/comments/lye4n5/bina... these agencies always focus on the wrongs things to investigate
- capableweb 6y agoWhat they are under investigation for now is much bigger than some random person loosing $100K which is a small sum when you consider the size of the whole market. And even so, nothing is stopping any agency from having multiple investigations running at the same time, one does not exclude the other and all that.
- csomar 6y agoTo begin an investigation (by the USA) they need first to establish that Binance has been operating in the US (aka US customers).
- JumpCrisscross 6y ago> they need first to establish that Binance has been operating in the US (aka US customers). Tether allegedly owns billions of U.S. dollars in a Bahamas account. Tether is a Binance affiliate. They are subject to U.S. jurisdiction.
- Kranar 6y agoAs per US charges against FIFA officials, the US claims extraterritorial jurisdiction over any matter involving US dollar transactions.
- StreamBright 6y agoFirst of all it is a clear case for law enforcement to get involved, I am not on Binance side on this one. However, I would strongly discourage anybody to start investing in crypto with a 100K ticket. It is much better to try it with 100USD and see how it works and start to put in a fix amount every month.
- 6y ago
- olalonde 6y ago> The news comes just a day after Binance announced it has hired Max Baucus, who served decades in the U.S. Senate and later as an ambassador to China, to help the firm navigate the U.S. regulatory landscape. Binance said Thursday that Baucus will provide the exchange with policy guidance and act as a liaison between Binance and regulators. Crony capitalism is alive and well in the US...
- qeternity 6y agoBinance led the migration to USDT as the default reserve currency in the crypto ecosystem. This could get very spicy.
- Tenoke 6y agoI guess it's maybe not the case but it does feel like the US are doing everything to support trading only on the local and more limited Coinbase. Binance has already went as far as to forbid US customers from using them, make a much worse but compliant US-only exchange, go as far as they can in finding VPN users and others who subvert the rules, hired a US senator to help them, and the US is still making more moves against them. The situation in the US is already really tedious if you want to invest in many big (top 10, even top 5 projects) and to trade in general in some states. It's disappointing to see.
- iamacyborg 6y agoI mean, don't you think it's reasonable for a government to want to ensure that their citizens aren't being ripped off or able to participate in illegal activities?
- Tenoke 6y agoIs the implication that (almost?) every other western country wants their citizens to be ripped off because they allow Binance? I don't think it's quite as simple as that..
- woodruffw 6y agoI think the more likely implication is that the US casts a wide shadow over international financial regulations, and that other countries that seek to do business with or in the US will aim to regulate in lockstep with the US. To that extent, waiting until the US fixes a source of fraud is strategically reasonable.
- kemonocode 6y agoSurely that's only in the best interest of the people, just like in all the areas a major government has a vested interest in exerting a large amount of control upon. Surely. EDIT: wording
- cwkoss 6y agoAnother spin on this situation would be "US is going after any exchange which doesn't comply with US regs/guidance and currently Coinbase is the only exchange willing/able to do so"
- chizhik-pyzhik 6y agoIt's trivial as a US resident to use binance.com using a VPN. There is no KYC requirement and they do nothing to block VPN IPs.
- FDSGSG 6y agoAnd a fake ID scan costs about as much as a VPN subscription... If we're going by what's "trivial", no amount of KYC will ever suffice.
- lucasnortj 6y agoGood. Crypto is nonsense. Ban it already