CFTC settles registration violations with Falcon Labs

The US Commodity Futures Trading Commission (CFTC) has reached a settlement with the major cryptocurrency broker Falcon Labs, Ltd. to resolve Falcon Labs' failure to register. This is the CFTC's first action against an unregistered futures commission merchant, and Falcon Labs was accused of improperly facilitating customer trading on digital asset exchanges. Falcon Labs neither admitted nor denied the CFTC's findings and was fined over $1.7 million. Previously, the CFTC had charged Binance and its former CEO, and Falcon Labs subsequently changed its method of collecting customer information and updated its know-your-customer policy. The CFTC said it hopes to encourage other illegal digital asset intermediaries to report their activities through cooperation and reform with Falcon Labs.