United

Bank AI

Summer

<div class="coingape"> 
 <h2 id="tightening-of-licensing-restrictions">Tightening of Licensing Restrictions</h2> 
 <p><span style="font-weight: 400">The accused DeFi platforms allegedly ran their operations without the proper U.S. authorizations. In addition to fines for failing to restrict access to their media from inside the United States, Opyn and Deridex were charged with operating without being registered as a swap execution facility or designated contract market.&nbsp;</span></p> 
 <p><span style="font-weight: 400">Furthermore, the customer requirements of the Bank Secrecy Act were not met during these operations.</span></p> 
 <h2 id="strong-cftc-s-findings-and-sentence-strong"><strong>CFTC’s Findings and Sentence</strong></h2> 
 <p>As a result, Opyn, ZeroEx, and Deridex settled with the <a rel="noopener noreferrer nofollow" title="CFTC" href="https://thebittimes.com/tag/cftc.html">CFTC</a> for $250,000, $200,000, and $100,000 respectively. Nonetheless, the <a rel="noopener noreferrer nofollow" title="CFTC" href="https://thebittimes.com/tag/cftc.html">CFTC</a>’s decision has been criticized, including a public dissent statement by <a rel="noopener noreferrer nofollow" title="CFTC" href="https://thebittimes.com/tag/cftc.html">CFTC</a> Commissioner Summer K. Mersinger claiming regulatory procedures limit innovation rather than support responsible growth in the DeFi industry.</p> 
 <p>While the DeFi community works through the fallout from these allegations, the <a rel="noopener noreferrer nofollow" title="CFTC" href="https://thebittimes.com/tag/cftc.html">CFTC</a> has designed to bring this decentralized industry within its jurisdiction. The Director of Enforcement of the Commodity Futures Trading Commission, Ian McGinley, stated:</p> 
 <blockquote> 
  <p>“Unlawful transactions do not become lawful when facilitated by smart contracts.”</p> 
 </blockquote> 
 <p>Hence, as DeFi grows and attracts mainstream attention, these cases may serve as a wake-up call for the industry. Moreover, regulatory compliance can no longer be an afterthought since it needs to be at the forefront of DeFi development and operations.</p> 
 <p>Despite the uniqueness and complexity of the DeFi space, it is evident that it must develop in conjunction with current legal frameworks if it is to grow sustainably. Moreover, the innovation potential might be severely hindered if regulatory interventions are maintained.</p> 
 <p></p> 
 <p></p> 
</div> 
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/cftc-charges-defi-protocols-tbt62078.html">https://thebittimes.com/cftc-charges-defi-protocols-tbt62078.html</a></p>

CFTC Charges DeFi Protocols

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TheBitTimes

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