In a surprising twist of events, crypto exchange Bybit appears to be under the regulatory spotlight of the CFTC. The US government agency has sent a subpoena to Coinbase, demanding information on user accounts connected to Bybit.
CFTC Targets Bybit
Following its regulatory crackdown on Coinbase, the Commodity Futures Trading Commission (CFTC), appears to have set its sights on ByBit, a prominent crypto exchange.
Tom Crown, a crypto enthusiast on X (formerly Twitter) has shared a screenshot of an email from Coinbase regarding a recent subpoena delivered to the crypto exchange by the CFTC. The details of the email have sparked concerns and discussions in the crypto space, prompting community members to ponder the motivations behind the CFTC’s actions.
According to Coinbase, the CFTC is requesting user’s sensitive information including transaction history, and other relevant information that connects their Coinbase accounts to Bybit.
“We write to inform you that Coinbase has been served with a subpoena in the above-referenced matter seeking information related to your account and account transaction activity,” Coinbase stated in the email.
The US government agency’s actions could be interpreted as a strategic move to investigate whether Bybit provided crypto exchange services to US customers through Coinbase. Should user accounts indicate any solid connections, it could have broader implications or Bybit.
Nevertheless, Bybit announced earlier this year that it does not operate in the US and has restricted access in various other countries. Despite these restrictions, users may still be able to use the platform through the benefits of VPN.
Coinbase Regulatory Compliance
In the email sent to its users, Coinbase stated that it would diligently follow orders of the CFTC’s subpoena unless the order is revoked by the government agency.
“No action is required from you, but Coinbase may respond to the Subpoena unless served before November 30, 2023, with a motion to quash or other objection to the subpoena that has been filed with the Court – including by sending information concerning your Coinbase account to the Commodity Futures Trading Commission,” the email stated.
Coinbase’s actions come as the crypto exchange navigates the complex regulatory challenges it faces with both the CFTC and the United States Securities and Exchange Commission (SEC).
The crypto exchange has emphasized its commitment to complying with all regulatory requirements and mandates in order to maintain a secure and transparent trading environment.
Total market cap at $1.4 trillion | Source: Crypto Total Market Cap on Tradingview.com