Binance blocked again as regulation ramps up again The era of no regulation is coming to an end?

For survival reasons, Cayman has been developing its financial services industry since the 1980s, sending companies from all over the world rushing to register.

Binance blocked again as regulation ramps up again The era of no regulation is coming to an end?

Cayman says Binance is unauthorized, investigation underway

When it comes to the Cayman Islands, it is estimated that many people will think of one word: tax haven.

This is indeed a persona that Cayman has worked hard to create for many years. For survival reasons, Cayman has been vigorously developing its financial services industry since the 1980s, allowing major companies around the world to rush to register for three reasons: social stability; low registration threshold and lenient regulation, with a registered capital of only $50,000 and no capital verification; extremely low tax rates, excellent business environment, and no local taxes for companies whose business operations are not in the local area.

Today, it is the 4th largest offshore financial center in the world, with over 100,000 companies registered on the island, including more than 700 banks, 800 insurance companies and nearly 10,000 hedge fund institutions. Among the companies registered in Cayman are subsidiaries of large multinational companies such as Coca-Cola, Procter & Gamble, Intel and Oracle, and also include major Chinese companies of all types such as Tencent, Baidu, Alibaba, Evergrande and Mengniu.

And the Cayman Islands is also a popular area for cryptocurrency companies to reside.

Last April, the Cayman Islands government proposed a number of regulatory measures to regulate the local cryptocurrency industry, such as the addition of the Virtual Asset Service Providers Act to the country’s Anti-Money Laundering Law.

And on the first day of stepping into the ” bitterly short mid-summer night, Kaixuan na wee cool” wonderful month of July, the Cayman Islands Regulatory Authority issued an announcement that Binance, Binance Group and Binance Holdings Limited are not registered, licensed, regulated or otherwise authorized by the Authority to operate cryptocurrency exchanges in or within the Cayman Islands. And the Regulatory Authority is investigating Binance for conducting unauthorized activities within the Cayman Islands.

Thai SEC Files Criminal Complaint Against Binance

Just yesterday, Thailand’s Securities and Exchange Commission (SEC) issued a notice that it has filed criminal proceedings against Binance with the Royal Thai Police’s Economic Crime Suppression Department for offering cryptocurrency trading to Thai investors and citizens without permission, and may face 2-5 years in prison and a fine of 200,000-500,000 baht.

The notice shows that Binance specifically violated Articles 26 and 66 of Thailand’s Digital Asset Business Emergency Decree, which was introduced in 2018.

Article 26: A digital asset business operator shall obtain a license from the Minister on the recommendation of the Securities and Exchange Commission.

Section 66: Any person who operates a digital asset business without a license issued under Section 26 shall be punished by imprisonment for 2 to 5 years and a fine of 200,000 to 500,000 Baht and a further fine of not more than 10,000 Baht per day for each day of the continuing violation.

In response to the Thai SEC’s announcement, Binance CEO Changpeng Zhao tweeted in response to Binance users.

For those of you who have been following and supporting us, you know we don’t engage in debate, rebellion, we focus on solving problems, and we will. As always, thank you for your trust and support! We will continue to grow together.

Binance blocked again as regulation ramps up again The era of no regulation is coming to an end?

It is not just the Cayman Islands and Thailand where Binance has already filled an already extraordinary May and June.

Within the last two months, Binance has received warnings from regulators in Canada, the UK, Japan and Singapore. Although the reasons for the warnings are different, Binance has responded successively.

The ill-fated, ” stormy” Binance

Binance seems to have been almost indefinitely in residence since it began its operations.

Time back to 2017, influenced by China’s policy, Binance left China and left a ” hope that the Chinese authorities can give digital virtual currency a standardized and clear path, if the domestic policy is open, Binance is confident to fight for the country “.

Binance, at that time, was affectionately known as ” the warrior who left for China” by Chinese users.

After leaving China, Binance came to Japan based on the Japanese policy of supporting virtual currency exchange business, so it came to Japan, but was warned by the Japanese Financial Services Agency to stop conducting the company’s business.

Dramatically, the day before the warning was issued by the Japanese Financial Services Agency, Malta’s Prime Minister Muscat tweeted: ” Welcome Binance to Malta, we want to be known as a global pioneer in the digital currency space and regulate the blockchain technology industry to create the most suitable habitat for the world’s leading fintech companies”.

In the year since Binance moved to Malta, with the support and help of Binance, a relatively complete crypto industry has been established and Malta has become ” Blockchain Island “. But pressured by a number of factors, including increased EU scrutiny of the country, domestic anti-corruption marches, and cryptocurrency investors questioning statements issued by Malta, Binance eventually parted ways with Malta to the Cayman Islands, the country where Binance Holdings Ltd. was registered.

Binance blocked again as regulation ramps up again The era of no regulation is coming to an end?

In May this year, Binance CEO Zhao Changpeng said in an interview with Decrypt that Binance has no headquarters.

The era of no regulation is coming to an end?

Shortly before that, the chairman of the U.S. Financial Services Commission said that a thorough examination of the cryptocurrency market will begin to ensure that ordinary investors are not exposed to the risk of manipulation and fraud. FinCEN in the US has made cryptocurrencies a national priority, regulating all illegal practices in cryptocurrencies.

The US attitude towards cryptocurrencies basically indicates that the era of no regulation of cryptocurrencies is coming to an end, and in the future both exchanges and project parties will be included in the regulatory framework by the US. Each country will also introduce its own regulatory plan one after another. When the world regulates cryptocurrencies one after another, it means that cryptocurrencies will become legal and compliant investments, and that time is the heyday of the crypto industry, and all investment-type institutions can enter and participate with confidence, so only the arrival of comprehensive regulation will push the crypto market to a further future.

Where will Binance go under the regulatory pressure?

Following the warnings issued by Japanese and British regulators to Binance before, more and more countries have joined the ranks of besieging Binance, including big countries like the United States, India, Singapore and Canada, as well as small countries like Thailand and Cayman Islands. This is easy to explain because Binance is already the absolute leader in the whole crypto field, and the users of the above countries use Binance too frequently, so regulation is necessary.

This of course explains why Binance has been the world’s largest exchange in terms of trading volume since 2018, but his market cap valuation is much smaller than Coinbase and even less than Kraken, and the reason for this is that it is not yet compliant.

And as domestic regulation gets tighter, Chinese virtual currency exchanges are ushering in an era of overseas operations. However, in countries that recognize cryptocurrencies, there is a requirement for exchanges to obtain a digital asset trading license.

For a cryptocurrency exchange like Binance that has gone “global”, obtaining digital asset trading licenses in more countries is an important prerequisite and guarantee for its overseas operations. For small and medium-sized exchanges that want to get bigger and play on, they will definitely need to take the path of applying for a license.

Summing up

Cryptocurrency exchanges are the gateway to the world for cryptocurrencies. The tightening of regulation will effectively change the chaos of the crypto industry; and the continuous improvement of regulation will effectively empower the crypto industry. So embrace the regulation and let the cryptocurrency market govern for a long time!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/binance-blocked-again-as-regulation-ramps-up-again-the-era-of-no-regulation-is-coming-to-an-end/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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