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SEC Lodges Criminal Complaint Against Binance Cryptocurrency Exchange

Binance has lately been the target of a slew of regulatory investigations for money laundering, tax evasion, and illegal activities. The Securities and Exchange Commission (SEC) has lodged a criminal complaint on Binance for running business without a permit in Thailand, only days after the UK’s Financial Conduct Authority (FCA) issued the firm with a consumer warning letter.
Binance’s platform facilitates trading and exchange services by:

“Matching orders, organizing counterparties, supplying the system, facilitating the entrance into a contract, or matching the demand for those who want to trade or exchange digital assets.”

According to the probe, Binance solicits the Thai public and investors to utilize its facilities via a Facebook page named Binance Thai Community, despite the fact that it does not have a license to do so. Binance has therefore broken or refused to follow Section 26 of the Securities and Exchange Commission’s rules, rendering them subject to criminal penalties under Section 66 of the Digital Asset Businesses Emergency Decree.

Violations of these provisions can result in jail sentences ranging from two to five years, as well as fines ranging from 200,000 to 500,000 Thai Baht ($6220 to $15,550). Penalties of not over 10,000 Baht ($311) per day are also levied if the violation persists.

As per the paper, the SEC sent Binance a legal notice on April 5, 2021, requesting a reasoned explanation. Nevertheless, the response did not arrive within the time frame given. The filing of a criminal complaint is described as the start of the criminal process. The issue will next be investigated by investigative authorities before being handed over to the public prosecutor.

“The SEC would like to stress that the Digital Asset Business Emergency Decree regulates digital asset business. Only those who have received the necessary licenses under the legislation are permitted to perform activities relating to digital asset trading, exchange, depository, transfer, withdrawal, or any other digital asset task. Violators may be subject to fines.”

The Financial Service Agency (FSA) of Japan has joined the UK in warning the public that Binance is running without a permit. Binance, together with Gemini Trust Co. LLC and Hong Kong-based Crypto.com, are now working to secure a license that would allow them to operate legally in Singapore.

This came after the Singapore financial regulatory agency said that it is investigating the exchange’s activities in the wake of recent regulatory action by overseas regulators. For the time being, the Monetary Authority of Singapore (MAS) has granted Binance permission to continue operating while it evaluates its application.

The application screening will be held under rigorous standards, as per MAS. After the Canadian Securities Administrators repeatedly warned crypto trading businesses to enroll with the Ontario Securities Commission by April 21, the exchange has halted operations in Ontario, Canada.

Binance, the Binance Group, and Binance Holdings are not “registered, regulated, licensed, or otherwise authorize” to run a cryptocurrency exchange from or inside the Cayman Islands, according to the Cayman Islands Monetary Authority (CIMA).

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