2023-09-08 17:10:11
© Reuters. Regulator Shuts Down Three DeFi Protocols for Illegal Derivatives Trading
CriptoFácil – On Thursday (7), the United States Futures and Commodities Trading Commission (CFTC) took coercive measures against three decentralized finance (DeFi) companies. According to the CFTC, companies traded digital asset derivatives without authorization.
The accusations came from the CFTC against Opyn Inc., ZeroEx Inc. and Deridex Inc. for violating the agency’s rules. In this sense, they also allowed US customers to illegally trade digital asset derivatives without registering on the platform. That is, they did not carry out an identity verification process, the famous KYC.
As a result, the CFTC issued a shutdown order, requiring companies to shut down. At the same time, it imposed civil penalties of US$250,000 on Opyn, US$200,000 on ZeroEX and US$100,000 on Deridex.
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Actions against DeFi
The latest development comes as the CFTC begins a series of actions aimed at monitoring developments in the cryptocurrency market. So far, the CFTC has taken a less active stance than the SEC, but the agency is also eyeing a number of projects.
Firstly, the regulator proposed a time-based cryptocurrency pilot program. Furthermore, it also solved the biggest exchange fraud with (BTC) in the history of the market. It should be noted that the CFTC considers BTC and Ether () as commodities and, therefore, under its jurisdiction.
The US government is stepping up its scrutiny of DeFi protocols. These platforms allow users to engage in trading, borrowing, and lending digital assets without the need for intermediaries. Therefore, US customers can access certain protocols without having to register.
In recent months, government agencies have also issued regulations, imposed sanctions, and taken enforcement actions to signal greater oversight and scrutiny of DeFi participants.
“Somewhere along the way, DeFi operators got the idea that illegal transactions become legal when facilitated by smart contracts. But they are not,” said CFTC Enforcement Director Ian McGinley.
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CFTC looking for ‘fraud’
Recently, the CFTC recorded a victory against a decentralized autonomous organization called Ooki DAO. This organization allegedly operated an illegal trading platform and also violated other agency rules.
In June, a federal judge ordered the platform to be closed and a fine of more than US$600,000 to be paid. However, not all CFTC members agreed with the agency’s decision on Thursday.
CFTC Commissioner Summer Mersinger said the agency should first focus on offering clear rules for DeFi rather than enforcing it. In other words, the CFTC must first establish the rules before determining which protocols are or are not violating a law that does not yet exist.
“I am concerned that the commission in these cases is taking another step down the path of initiating enforcement actions when we should be interacting with the public,” Mersinger said.
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