Binance, the world'due south largest cryptocurrency substitution by trade volume, is reportedly nether investigation by the United States Commodity Futures Trading Commission regarding possible trades fabricated by U.S.-based customers.

Binance Holdings Ltd is being investigated by the watchdog concerning possible derivatives trades made by American customers, Bloomberg reported on Fri, after being tipped off by an anonymous source.

The commutation has non nevertheless been defendant of whatever wrongdoing, nonetheless, regulators are now reportedly seeking to decide whether cryptocurrency derivatives were bought and sold past U.S citizens on the Binance platform.

A Binance spokesperson told Cointelegraph, "Nosotros do not annotate, equally a affair of policy, on communications with any regulators. What we tin say is that nosotros take a collaborative approach in working with regulators around the world and nosotros have our compliance obligations very seriously."

Cryptocurrency derivatives trading shot to new heights throughout the beginning of 2021, with Binance itself interim as the venue for $59 billion's worth by the fourth dimension of publication — more twice the sum of its nearest competitor, Huobi Global.

Recently, Singapore-based crypto derivatives exchange Bybit was forced to close down its operations in the Uk in the wake of the Financial Behave Authority's ban on retail derivatives trading.

Binance reportedly blocks users from U.S. IP addresses from entering the site, however a controversial Forbes article from Oct 2020 claimed that founder and CEO, Changpeng Zhao, regularly encouraged users to employ a VPN.