Finance is the largest crypto exchange. It is domiciled in the Cayman Islands. Their customers are predominantly American according to the US regulator CFTC, and as such are bound by registration and regulatory requirements under US law.

This will be a battle. Given the reaction from Binance it leaves me wondering if the case will show up other regulatory matters.

Step by step Crypto are losing what they see as their independence but most non crypto see it for what it is – protection from nefarious conduct, mixing customer funds on the balance sheet to achieve synergies of funds access but in reality are placing the company at extreme balance sheet risk. SBF suite of 100’s of companies are the most obvious example.

Crypto exchange Binance accused by CFTC of illegally serving US clientsFT

The Commodity Futures Trading Commission alleged in a civil complaint filed on Monday that much of Binance’s reported trading volume and profitability have come from “extensive solicitation of and access to” US customers, contradicting the exchange’s claims.

“Binance’s solicitation of customers located in the United States subjected Binance to registration and regulatory requirements under US law. But Binance, Zhao, and Lim have all chosen to ignore those requirements,” the CFTC’s complaint said.