Cryptocurrency exchange Bybit continues to come under scrutiny from regulators in various countries, including the UK and Japan. Recently, however, many have speculated that the exchange has come under the scrutiny of the U.S. Commodity Futures Trading Commission (CFTC), as the regulator increases its pressure on offshore companies providing services to the U.S. cryptocurrency market.
Cryptocurrency exchange Coinbase sent emails to some of its users warning them of a subpoena from the CFTC regarding Bybit's activities.
"No action is required from you, but Coinbase may respond to the Subpoena unless served before November 30, 2023, with a motion to quash or other objection to the subpoena that has been filed with the Court, including by sending information concerning your Coinbase account to the Commodity Futures Trading Commission," the email said.
According to information published by The Block, the regulator has the authority to conduct investigations, including through voluntary statements and subpoenas. Coinbase is also required by U.S. law to collect and provide information, including information related to subpoenas.
"We may access, read, preserve, and disclose information when we believe it is necessary to comply with the law, legal obligations, regulations, law enforcement, governmental and other legal requests, court orders, or to disclose information to taxing authorities," Coinbase said in a statement.
It's worth noting that Coinbase can also fight the subpoena, preventing the transfer of users' personal information.
Cryptocurrency exchange Bybit has more than 15 million users worldwide and does not serve limited markets such as the UK and U.S. In May, the exchange introduced mandatory KYC checks.
Events in recent months indicate that U.S. regulators are increasing their scrutiny of cryptocurrencies and related companies.
In November, payment system PayPal received a subpoena from the Securities and Exchange Commission (SEC) in connection with the PayPal USD (PYUSD) stablecoin.
The SEC is also continuing litigation with Coinbase, alleging that the company is illegally acting as an exchange, broker, and clearing agency.
Earlier, it was announced that ARK Invest is selling Coinbase shares.
