Falcon Labs, a Seychelles-based crypto brokerage, faced a $1.7 million fine from the CFTC for operating as an unregistered futures commission merchant (FCM).

The settlement marks the CFTC's inaugural action against an unregistered FCM in the crypto sphere.

Falcon Labs facilitated unauthorised access to digital asset derivatives for US customers, leading to $1.1 million in net fees.

This enforcement underscores the CFTC's commitment to regulatory compliance and market integrity within the burgeoning crypto industry.

It also signals increased regulatory scrutiny on crypto activities by US authorities, emphasising the importance of compliance for industry participants.