CFTC settles registration violations with Falcon Labs

The U.S. Commodity Futures Trading Commission (CFTC) has reached a settlement with crypto major brokerage Falcon Labs, Ltd., resolving the issue that Falcon Labs should have registered but did not. This is the CFTC's first action against an unregistered futures commission merchant, and Falcon Labs was accused of improperly facilitating customers' trades on digital asset exchanges. Falcon Labs did not admit or deny the CFTC's findings and was fined more than $1.7 million. Previously, the CFTC had charged Binance and its former CEO, and Falcon Labs subsequently changed the way it collects customer information and updated its know-your-customer policy. The CFTC said it hopes that through cooperation and rectification with Falcon Labs, other illegal digital asset intermediaries will be encouraged to report their activities to it.