CFTC Chief Calls Binance Intentionally Violating Commodity Futures Rules

Previously, crypto exchange Binance, which has been sued by US regulators said on Tuesday, April 4, 2023 it was expanding services in inflation-hit Argentina, allowing users to buy and sell digital currency directly with pesos.

This move allows Argentinian citizens to transfer pesos to their Binance account through a local partner, which can then be used to buy cryptocurrency. Until now, Binance operated in Argentina only as an intermediary platform to match crypto buyers and sellers.

Binance Director at Southern Cone Maximiliano Hinz said in a written statement, Argentina is a key market for the exchange. “This launch is related to the public demand that is here,” said Hinz, quoted from Channel News Asia, Saturday (8/4/2023).

He said local users can transfer pesos to a Binance account and see their balance on the platform in local currency, which can then be used to buy crypto.

The expansion in Argentina, where annual inflation above 100 percent has made the cryptocurrency more attractive despite its volatility and risks, comes as Binance faces regulatory scrutiny in the US and elsewhere.

The US Commodity Futures Trading Commission (CFTC) late last month sued the company and its CEO Changpeng Zhao for operating what regulators said was an “illegal” exchange and a “fake” compliance program.

Zhao, a Chinese-born billionaire who moved to Canada at the age of 12, called the CFTC’s complaint unexpected and upsetting.

As Binance faces intense scrutiny from regulators, the exchange has lost some of the banking partners needed for so-called on-ramp, off-ramp transactions into fiat currencies. Paysafe, which processes sterling payments, was recently withdrawn in March.