Shedding light on the complexities of cryptocurrency regulation and the consequential legal actions against Binance founder Changpeng Zhao, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam on Thursday said the crypto mogul could eventually serve jail time.
In an interview with CNBC, Behnam discussed the challenges in establishing a clear regulatory framework for digital assets and the efforts to combat illicit activities associated with cryptocurrencies.
Behnam emphasized the urgent need for Congress to intervene and address the regulatory gaps that currently exist in the cryptocurrency market.
He highlighted the critical issues of customer fraud, market manipulation and the use of cryptocurrencies in illegal activities, including terrorism financing.
The chairman called for bipartisan efforts to develop effective regulations that can keep pace with the evolving digital asset landscape.
During the interview, Behnam also spoke about the different regulatory perspectives within U.S. agencies, stressing the importance of a cohesive approach to protect the financial market and consumers.
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He underlined the shared goals of various regulatory bodies in safeguarding the U.S. financial system.
A significant part of the discussion revolved around the legal proceedings against Binance and its founder.
Behnam said, "We have over $4 billion in fines on the criminal and the civil side, CFTC, Justice and Treasury. Obviously, there's the criminal side. So he will be going to jail."
Binance and Zhao admitted guilt to federal charges on Nov. 21 as part of a resolution with the U.S. Justice Department amounting to $4.3 billion.
Binance conceded to violations related to the Bank Secrecy Act, unlicensed money transmitting and the International Emergency Economic Powers Act, the Justice Department said.
Zhao, the Canadian founder of Binance, pleaded guilty to failing to maintain an effective anti-money laundering program in violation of the BSA.
Zhao has since stepped down from his role as CEO of Binance.
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