Photo: Reuters alt=The Binance app is seen on a smartphone in this illustration taken July 13, 2021. The Binance app is seen on a smartphone in this illustration taken July 13, 2021. In one example provided by the SEC, a Binance chief compliance officer messaged a colleague, "We are operating as a f**king unlicensed securities exchange in the USA bro." The SEC complaint includes accounts of internal communications and insider testimony. Some industry insiders who spoke on the condition of anonymity said Binance is unlikely to pursue a licence at this point, as the exchange may be deterred by high regulatory requirements that include limiting the trading of cryptocurrency to retail investors to tokens with large capitalisations, and excluding products like derivatives and stablecoins.īinance recently said it would exit the Canadian market due to increased regulatory scrutiny there, and it lost its derivatives business licence in Australia.
#CRYPTO ALT BINANCE NEWS MARCH 019 UPDATE#
"We regularly review and update our compliance policies and procedures to ensure that we comply with the laws, regulations and compliance requirements of each jurisdiction." "We welcome more regulatory clarity for the industry and we are reviewing the rules carefully and considering our options to best encourage adoption of cryptocurrencies, to support Hong Kong becoming a virtual-assets hub whilst prioritising protecting our users," she said. While some rival exchanges that also left China have been wooed back to Hong Kong to apply for licences under the city's new rules, Binance has made no such commitment.Ī Binance spokeswoman declined to comment on whether the company would apply for a Hong Kong virtual asset licence.
The cryptocurrency market tumbled by about 4 per cent the day after the SEC charged Binance, according to CoinMarketCap, while Binance Coin (BNB) dropped more than 7 per cent.īinance had roots in mainland China when it was founded in 2017, but it fled later that year during one of Beijing's earlier crackdowns on cryptocurrency, which is now strictly banned in the country. Trading volumes will likely drop further and pressure market makers' revenue projections," he said. "The industry will be very different in a year. "The result will likely be billions of dollars in fines and Binance no longer serving US customers," said Markus Thielen, head of research and strategy at cryptocurrency financial services firm Matrixport, adding that it would be an "unfortunate but expected development". The agency alleged the platforms did not operate independently from one another as advertised, and failed to protect investors, promoted unregistered securities, and mishandled customer funds.
On Monday, the SEC filed 13 charges against Binance entities, including and its US-facing platform Binance.US, and Zhao, who is widely known as "CZ". The result is that selling cryptocurrency without a licence is getting a lot harder in many parts of the world, and that is exactly what the SEC alleges Binance was doing. In the absence of cryptocurrency-specific legislation, regulation of virtual assets in the US has largely been left to financial watchdogs like the Securities and Exchange Commission (SEC) - which also charged Coinbase on Tuesday with operating an unregistered securities exchange - while markets as far-flung as Hong Kong and the European Union have rolled out specific rules requiring licences for exchanges.
A US lawsuit charging Binance and co-founder Zhao Changpeng with selling unregistered securities, alleging that the world's largest cryptocurrency exchange had a pattern of flouting regulations in pursuit of growth, is the latest sign of how regulators' more muscular approach to policing virtual assets continues to affect the global market.
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