Decentralized finance (DeFi) is bearing the full brunt of the regulatory winds blowing from the USA. Three industry giants, including Opyn, ZeroEx (0x protocol) and Deridex, have been caught up in the CFTC’s storm of sanctions.
Three DeFi funds face CFTC fury
Crypto regulation in the United States is steadily intensifying, and every day brings its share of controversy. Recently, the spotlight has fallen on three DeFi giants: Opyn, ZeroEx (0x protocol) and Deridex.
The Commodity Futures Trading Commission (CFTC), one of the main American regulatory authorities, has taken a position against these platforms, imposing substantial fines.
These companies are accused of facilitating illegal transactions in cryptocurrency derivatives. The CFTC particularly criticizes these platforms for failing to comply with registration rules while offering leveraged trading.
In addition, they appear to have violated consumers’ rights, by transgressing the banking secrecy law.
Substantial fines for DeFi platforms
Following the accusations made, the CFTC heavily punished these DeFi players. Opyn was fined $250,000, followed closely by ZeroEx with 200,000, and Deridex with $100,000.
Ian McGinley, executive director of the CFTC, emphasized the importance of regulation. He insisted that despite the rapid evolution of the DeFi sector, compliance remains paramount.
The DeFi ecosystem may be new, complex and evolving, but the Enforcement Division will continue to evolve with it and aggressively pursue those who operate unregistered platforms that allow U.S. citizens to buy and sell derivatives of digital assets.Ian’s statement
The debate over crypto regulation in the U.S. continues to rage, with Binance always in the foreground.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.