The members of Binance are determined to have the motion that was filed by CFTC against them dismissed. They strongly agree that CFTC does not have the right to impose its regulations as they are not stationed in the United States. According to CFTC, Binance has been involved in illegal transaction facilitation for commodity derivatives since 2019.
Binance vs. CFTC
Binance made their move to make the charges against them dropped on Thursday. According to the exchange, US laws are meant to be followed within the borders of the States and not anywhere else in the world. This was made in reference to the case between Microsoft and AT and T. CFTC also had a tendency of hanging onto an irregular combination of illegal theories. These theories are apparently, based on contradictory registration groups. Binance also claims that CFTC went ahead and presented an unsound claim that was part of a regulation no longer in use.
In addition to this, the motion filed by CFTC does not prove that a foreign Binance tool was serving as a Futures Commission Merchant but brings out the Binance site as an exchange wallet only and not as an application that is designed to perform trades. In case Binance were to be included in the CFTC governance protocol, it would lose its decentralization rights. Also, the members believe that Binance would be functioning as a Designated Contract Market and not as an FCM.
As a result of the possible consequences, Binance members are currently trying to convince the court to drop the charges imposed against the foreign entities and their CEO, Changpeng Zhao. CFTC claims that Samuel Lin, former Chief Compliance Officer, and other Binance members dodged the rules to hide their operations.
Binance has continuously refused to reveal its main operation base despite the fact that the parent company is based in the Cayman Islands. The CFTC is yet to respond to all that is going on.
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