The Commodity Futures Trading Commission (CFTC) has taken enforcement action against three decentralized finance (DeFi) protocols, Opyn, ZeroEx, and Deridex, by filing and settling charges. California-based Opyn and ZeroEx were fined $250,000 and $200,000, respectively, whereas North Carolina-based Deridex has been slapped with a civil monetary penalty of $100,000.
All three companies also face cease and desist orders for violating the Commodity Exchange Act (CEA) and CFTC regulations.
As announced yesterday (Thursday), Deridex and Opyn were charged as they failed to register as a swap execution facility (SEF) or designated contract market (DCM) and also as a futures commission merchant (FCM). These two companies also did not put a customer identification program as part of a Bank Secrecy Act compliance program, which is mandatory for FCMs.
The US regulator also charged the three companies for illegally offering leveraged and margined retail commodity transactions in digital assets.
DeFi Platforms Need to Follow the Regulations
DeFi companies offer many bank-like services but on the blockchain . As their dealings are primarily with cryptocurrencies
