UNI Price Rockets As CFTC Slaps Uniswap Labs With $175K Settlement Fine
The post UNI Price Rockets As CFTC Slaps Uniswap Labs With $175K Settlement Fine appeared on BitcoinEthereumNews.com.
The UNI price surged more than 8% today, before witnessing a slight retreat after the US CFTC slapped Uniswap Labs with a settlement fine. In a recent update, the US Commodity Futures Trading Commission (CFTC) has issued an order against the firm for illegal digital assets derivatives trading. According to the filing, the crypto firm is required to $175,000 in penalty to settle the regulatory charges. CFTC Cracks Down On Uniswap Labs The CFTC has issued an order against Uniswap Labs in a recent enforcement action. According to the filing, the regulators accused the firm of facilitating illegal leveraged and margined retail commodity transactions through its decentralized trading protocol. Meanwhile, the agency claimed that the company, under the name Universal Navigation Inc., enabled the trading of digital assets through liquidity pools without complying with crucial guidelines. According to the CFTC, the trading protocol offered users exposure to leveraged digital assets, including tokens linked to Bitcoin and Ether. These transactions did not meet the 28-day delivery requirement and were therefore deemed non-compliant with existing laws governing commodity transactions. The regulator stressed that such trades should only occur on a recognized and registered board of trade, which Uniswap Labs is not. CFTC claimed that the trading protocol offered users exposure to leveraged digital assets, including crypto like Bitcoin and Ethereum. These transactions, as per the report, didn’t meet the 28-day delivery requirement and were therefore deemed non-compliant with the existing regulations of the commodity transactions, The agency said that such trades should only occur on a recognized as well as registered board of trade, which the firm is not. Notably, Director of Enforcement Ian McGinley highlighted the importance of compliance in the evolving DeFi landscape. He stated, “DeFi operators must ensure transactions comply with the law.” Meanwhile, the settlement underscores the CFTC’s…
Filed under: News - @ September 4, 2024 11:19 pm