- In response to the Seychelles-based company’s order, the CFTC settled, as stated in a statement made public on Monday.
- According to the CFTC, Falcon Labs traded futures and swaps directly on digital asset exchanges, such as Binance.com, using sub-accounts.
The U.S. Commodities Futures Trading Commission agreed with cryptocurrency premier brokerage firm Falcon Labs, Ltd. after the agency stated the company ought to have been registered, making this the first instance of its sort.
In response to the Seychelles-based company’s order, the CFTC settled, as stated in a statement made public on Monday. According to the agency, Falcon Labs acts as a middleman to help its clients trade on several digital asset markets. According to the CFTC, Falcon Labs ought to have registered as a futures commission merchant (FCM) with the organization by doing that.
The ruling on Monday, according to the CFTC, was the first taken against an unregistered FCM that had unjustly made it easier to access exchanges for digital assets.
Falcon Labs was forced to pay fines totaling more than $1.7 million and refused to acknowledge or refute the CFTC’s conclusions.
Sub-profiles
According to the CFTC, Falcon Labs traded futures and swaps directly on digital asset exchanges, such as Binance.com, using sub-accounts. After filing charges in March 2023, the agency reached a settlement with Binance and its former CEO, Changpeng Zhao.
Falcon Labs voluntarily modified its know-your-customer practices and altered its client information collection methods after the CFTC filed charges against Binance, in accordance with the CFTC’s decision.
The CFTC hopes to encourage other illegal digital asset intermediaries to come forward and report their activities to the agency by recognizing Falcon Labs’ substantial cooperation and remediation in this order in the form of a lower penalty, according to a statement from the agency’s Director of Enforcement, Ian McGinley.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
