Binance continuous support for TUSD raises questions

• Binance continuous support for TUSD triggers concerns within the crypto community.

• Binance has also been sued by the CFTC for violating regulations.

Binance recently announced that it is adding more TUSD trading pairs including XRP, Solana, Matic, SSV, Lido DAO and Optimism. According to the announcement, users can start trading them from March 29 at 08:00 UTC.

Users will enjoy zero maker fees on the LDO/TUSD, MATIC/TUSD, OP/TUSD, SOL/TUSD, SSV/TUSD and XRP/TUSD trading pairs until further notice.

Where any discrepancy arises between the translated versions and the original English version, the English version shall prevail.

The exchange is also reported to have converted its BUSD holdings in the Secure Asset Fund for Users (SAFU) to TUSD and USDT after Paxos was ordered by US regulators to stop minting BUSD. 

As Paxos will no longer be minting new BUSD, #Binance has swapped the BUSD in the SAFU Fund for TUSD & USDT. This change will have no impact on users, and the funds remain on publicly verifiable addresses. Funds are SAFU.

Binance recently announced that it is shifting its zero-fee Bitcoin trading facility to TUSD only. However, the zero maker fee would still apply to BNB/TUSD and ETH/TUSD trading pairs.

Given recent events, we are moving 0 fee BTC trading from BUSD to TUSD. Let’s spread the liquidity to more pairs. We add pairs and provide liquidity. Binance aims to be an open platform.”

Binance’s extensive support for the stablecoin despite having a market cap of just $2 billion have raised several questions within the crypto community. Between March 12-13, its market cap surged from $1.3 billion to 2.08 billion. TUSD has been linked to Tron founder Justin Sun by multiple reports.

Binance facing a number of charges by the CFTC

In addition to the several questions raised by the crypto community, the Commodity Futures Trading Commission (CFTC) has sued the exchange for violating US trading laws. Binance CEO Changpeng Zhao has been accused of teaching VIP customers in the US to avoid compliance control. 

CFTC Chairman Rostin Behnam said:

For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance. This should be a warning to anyone in the digital asset world that the CFTC will not tolerate willful avoidance of U.S. law. I applaud the diligent and dedicated work of the CFTC’s Enforcement team in bringing this action, and for their hard work in addressing illegal operations in the digital asset space.

In addition to the many charges, CFTC accuses the employees of knowing that the platform engages in illegal activities. A specific reference was made to February 2019 when former compliance chief Samuel Lim received information on the HAMAS transaction. The filing stated that Lim said to a colleague that terrorists usually send small sums across the platform as large sum constitutes money laundering. Zhao was also accused of controlling dozens of entities that operate the Binance platform as a common enterprise. 

This and several other charges put the Binance empire in danger despite the latest comment by Zhao to refute these allegations. 

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