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What type of regulatory issue will FalconX next face by mid-2025?
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Resolution / Starting Odds
Unregistered trading activities • 25%
Insufficient KYC/AML processes • 25%
Data privacy issues • 25%
None • 25%
Official regulatory announcements or legal documents
Story
CFTC Orders FalconX (Falcon Labs) to Pay $1.8M for Illegal Derivatives Trading
May 13, 2024, 06:25 PM
The Commodity Futures Trading Commission (CFTC) has issued an order against crypto prime brokerage firm FalconX for illegally providing U.S. customers access to digital asset derivatives trading platforms. FalconX, also known as Falcon Labs, has agreed to pay $1.8 million to settle the charges, which include operating as an unregistered futures commission merchant. The charges stem from FalconX facilitating derivatives trades on Binance for U.S. customers prior to March 27, 2023, when the CFTC sued Binance. Following the lawsuit, FalconX quickly strengthened its Know Your Customer (KYC) processes.
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Fully operational • 33%
Operational with limitations • 33%
Fails to resume operations • 34%
No Action • 33%
Investigation • 33%
Regulatory Action • 33%
No further action • 25%
Minor fines or penalties • 25%
Major fines or restructuring required • 25%
License revocation or major sanctions • 25%
Approval • 30%
Investigation • 35%
No Action • 35%
New regulations introduced • 50%
No significant changes • 50%
Data Privacy • 25%
Compliance Costs • 25%
Interoperability • 25%
Legal Jurisdiction • 25%
Stricter warning label requirements • 25%
Increased penalties for non-compliance • 25%
Mandatory ethnic-specific testing • 25%
No significant changes • 25%
Increase in legal challenges • 33%
No significant change in legal challenges • 33%
Decrease in legal challenges • 34%
Tougher regulations • 33%
No change in policy • 33%
Relaxed regulations • 34%