The CFTC is probing the crypto exchange BitMEX for reportedly providing suspicious services to American traders as noted in the altcoin news reports.
According to the reports, an anonymous source noted that the United States regulatory watchdog is investigating the popular bitcoin exchange and says that the probe centers around BitMEX are allowing US traders on the platform. BitMEX is not a CFTC-registered platform but it is still illegal for Americans to trade the crypto derivatives that are noted on the bitcoin exchange. The regulatory ambit over crypto for the CFTC came after a federal ruling back in 2018 when it declared cryptos to be commodities. Because of this, the Commission now has jurisdiction over any place where the crypto-based derivatives might intersect with the United States traders even the platforms that are based abroad. The HDR Global Trading Limited, which is the owner of BitMEX did not comment on any media reports or about the ongoing investigations by the government agencies.
The terms of service of the exchange do not include a list of restricted jurisdictions and apart from the United States, some of the other countries banned are Iran, Syria, Cuba and North Korea. There are also some reports of users that show how their accounts got terminated on the platform based on the suspicion that they were only US customers. Tone Vays for example, tweeted in 2018 saying that BitMEX shut down his account for the same reason and this is why the CFTC is probing the crypto exchange:
‘’Just got my @BitMEXdotcom account terminated on suspicion of being a US Citizen. Anyone else find the timing of this odd?
The 900+ affiliates that accounted for half my income r gone going forward.
After #Unconfiscatable Conf expect prices on all services offered by me to rise.’’
As noted in the latest cryptocurrency news became the largest crypto exchange under investigation in the United States based on the suspicion of doing business in America. Exchange such as Poloniex and Bittrex are massively adopting the know-your-customer protocols in order to avoid sharing the same destiny as Bitmex as noted in the reports previously.
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“The Darknet is commonly used for a number of illicit activities, including fentanyl trafficking.’’In July 2018, the U.S. Government and Department of Justice seized AlphaBay’s servers and assets since at that time the processor was the largest criminal darknet market on the internet. AlphaBay required its users to transact in CVC including Ethereum, monero, and Bitcoin to obfuscate transactions and related parties. Beyond fentanyl, the role of crypto worldwide in illicit activities is still an important topic of constant debate. Despite the warnings from governments, the independent studies find that cash and other fiat currencies remain the criminal’s medium of choice of transactions. Bitcoin’s traceability makes it suboptimal to use in illicit activities because it is an anonymous payment method even with the US authorities saying it would in fact be helpful if its use continued.
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“I would like to say I had enough foresight and enough courage to buy as it went all the way down.’’The bitcoin price was trading today at $10,560 which means that Bannon was highly rewarded and some other crypto investors as well that survived the ‘’crypto winter.’’ Steve Bannon had a bullish bet that led Joe Krenen himself who is also a budding Crypto Twitter darling to create a new nickname for the Breitbart executive chairman to ‘’Bitcoin Bannon.’’ Steve Bannon says that his interest in cryptocurrency is now more than speculative. The remarks he made in the past he stated that crypto technology would be a huge and important part of this new true passion project which is the ‘’global populist revolt.’’
“I think cryptocurrencies have a big future, I really do. I think they can be a very important part going forward, particularly in this global populist revolt.’’Previously, Bannon called bitcoin and its usage a ‘’disruptive populism’’ and stated that the cryptocurrency is a revolutionary technology because it takes back the control from the central authorities which are central banks and US Federal Reserve who have strict monetary policies and have been causing President Trump so much consternation in the past year. Bannon even noted that he is considering launching its own ‘’utility token for the populist movement’’ but it is still not appear that the plans are going really anywhere. As noted in the coming altcoin news, Trump stated that he is not a fan of bitcoin and some of the cabinet officials have railed against the cryptocurrency and connected it with criminal activity. The Treasury Secretary Steven Mnuchin even warned that it could even become a national security risk and a huge threat to the global financial system.
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