Uniswap Labs Fined $175,000 for Illegal Crypto Derivatives Trading
The U.S. Commodity Futures Trading Commission (CFTC) has slapped Uniswap Labs, the brains behind the decentralized Uniswap exchange, with a $175,000 fine. The reason? Uniswap Labs allegedly offered illegal crypto derivatives trading through leveraged tokens.
- **The CFTC’s beef:** Uniswap’s leveraged tokens didn’t meet their requirements and were deemed commodity transactions. They were also offered without the proper CFTC registration.
- **Compliance matters:** Uniswap Labs worked with the CFTC during the investigation, leading to a lighter penalty.
- **DeFi under the microscope:** This case spotlights the growing regulatory attention on the decentralized finance (DeFi) space.
This isn’t the first time Uniswap Labs has faced regulatory scrutiny. The Securities and Exchange Commission (SEC) issued a Wells notice to the company earlier, raising concerns about unregistered securities.
The CFTC’s director of enforcement, Ian McGinley, emphasized that DeFi operators must play by the rules to avoid similar enforcement actions.
