There is mounting evidence that U.S. regulators are taking concerted action against the crypto industry players. According to one estimate, American regulators have initiated 75 legal proceedings against crypto industry players. Despite the high number of legal actions, it now appears the regulators were more measured in their approach. The U.S. Federal Trade Commission vs. Bitcoin Funding Team case was settled outside the court for roughly US$1 million. In comparison, BlockFi settled its SEC case for $100 million!
The aggressive persecution of crypto businesses by American regulators, besides stringent action by other world governments, is pushing the crypto industry towards decentralized platforms like TMS Network (TMSN).
Binance (BNB) Faces New Legal Action by US CFTC
The Commodity Futures Trading Commission (CFTC) has sued Binance (BNB) and its CEO, Changpeng Zhao, for willfully evading U.S. laws. CFTC asserts that Binance (BNB), under the leadership of Zhao, asked its employees to help their customers circumvent its own compliance policy that restricts users from specific countries like the U.S. and China. Zhao has maintained that Binance (BNB) took strong measures to prevent American users from accessing their platform. However, the emails and chats of people associated with Binance (BNB), which are available to regulators, say otherwise. Making matters worse, Reuters had unraveled the direct involvement of Binance (BNB) and its employees in helping their customers circumvent the exchange’s compliance systems.
Among other things, the CFTC is seeking a blanket ban on the operations of Binance (BNB) and its subsidiaries in the U.S. Although Binance (BNB) is not based out of the U.S., it has an enormous presence in the country. If CFTC succeeds in ousting the company from the country, Binance (BNB) will suffer irreparable damage to its revenues.
Kraken Settles for $30 Million With the SEC for Staking
The centralized crypto exchange, Kraken, was offering a staking program to its users for years. Staking ensures liquidity for the crypto exchange while giving rewards to the users. Kraken advertised 21% in staking rewards to users. The SEC alleges several discrepancies in Kraken’s offering of staking services. Firstly, the regulator treated the staking service as the offer of sale of unregistered securities. Secondly, they pointed out Kraken’s nondisclosure of important information like fees, investment risks, and the company’s financial condition. Lastly, they highlighted Kraken’s policy to reserve the right not to pay any returns on the staked funds, exposing users to extreme uncertainties.
While there’s some merit to SEC’s allegations, the crypto industry has always been a highly uncertain and volatile space. That’s how most crypto investors build wealth in the industry – by exploiting its volatility. Imposing the same restrictions on this volatile space as the trad-Fi space would be incongruent. Nevertheless, Kraken settled for $30 million in penalties with the SEC.
TMS Network (TMSN) Steers Clear of Controversies
Centralized exchanges like Binance (BNB) and Kraken suffer from unavoidable trust issues. Their opaque operations elicit doubts about their integrity and attract investigations by regulatory bodies. In contrast, TMS Network (TMSN) is a decentralized crypto exchange. TMS Network (TMSN) native token TMSN is used to operate the platform and gives token holders governance rights. The TMS Network (TMSN) token holders vote on all important decisions regarding the platform, so there’s no room for vested interests to act criminally.
Going forward, it appears that DEXs like TMS Network (TMSN) will become the mainstay of the crypto industry. As TMS Network (TMSN) races towards its target of raising $12 million as part of its ongoing ICO, regulatory action on CEXs is pushing TMS Network (TMSN) popularity and token purchases in presales.
To find out more please check the links below:
Presale: https://presale.tmsnetwork.io
Website: https://tmsnetwork.io
Telegram: https://t.me/TMSNetworkIO
Twitter: https://twitter.com/tmsnetwork_io
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