Opyn, ZeroEx, and Deridex Settle with CFTC Over Geoblocking Violations
Opyn, ZeroEx, and Deridex have settled charges with the CFTC for failing to geoblock U.S. users. The three decentralized exchanges must pay civil penalties and face cease and desist orders. This article discusses the charges, fines, and implications for the DeFi industry.
Posted 10 months ago in DeFi and CeFi
Decentralized exchanges Opyn, ZeroEx, and Deridex have settled with the Commodities and Futures Trading Commission (CFTC) on charges that included failing to geoblock U.S. users. The CFTC filed and settled charges against the three decentralized exchanges (DEXs), imposing fines and issuing cease and desist orders.
The charges against Opyn, ZeroEx, and Deridex primarily revolved around their failure to obtain the appropriate licenses for operating in the U.S. Additionally, Deridex and Opyn faced charges for failing to register as a swap execution facility (SEF) or designated contract market (DCM) and failing to register as a futures commission merchant (FCM). The two exchanges were also held liable for not blocking U.S. users and violating anti-money laundering laws under the Bank Secrecy Act.
The CFTC orders stipulate that Opyn, ZeroEx, and Deridex must pay civil monetary penalties of $250,000, $200,000, and $100,000, respectively. Furthermore, the CFTC released a detailed report on the violations of each exchange individually.
Opposition to the CFTC ruling has emerged, with CFTC Commissioner Summer K. Mersinger issuing a public dissent statement against the regulator's actions. Mersinger argues that these enforcement actions hinder innovation in the DeFi space and fail to engage with market participants effectively.
Despite the opposition, the CFTC's actions have renewed fears of a regulatory crackdown on DeFi protocols, as the ruling holds significance for the decentralized finance industry as a whole.
Last updated 9/9/2023, 3:25:59 AM
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