The reasons behind the intensive investigation of Binance by regulators in many countries are revealed

Binance is under global crackdown, can other exchanges be spared?

As global regulators tighten their grip on the cryptocurrency industry, Binance, one of the world’s largest cryptocurrency exchanges, has recently been “targeted” and “named and shamed” by a number of countries.

What countries are taking action against Binance? At least Thailand, Singapore, Japan, UK, Cayman Islands, etc.

On July 2, the Securities and Exchange Commission of Thailand announced on Friday that it had initiated criminal proceedings against Binance and was investigating the alleged unlicensed operation of a digital asset business. Authorities said Binance offered unlicensed crypto trading services through its website “to match orders or arrange counterparties, or to provide systems or facilitate agreements. According to the Securities and Exchange Commission of Thailand, “Only providers licensed under relevant laws may provide services related to digital asset trading, trading, custody, transfer, withdrawal or any services related to digital asset trading. Violators may be subject to legal penalties.”

July 1 (Bloomberg) — Singapore’s financial regulator said it will follow up with Binance’s Singapore subsidiary as required after it came under scrutiny from regulators around the world.

Binance Response.

Binance Asia Services Ltd. said it has a grace period while the Monetary Authority of Singapore (MAS) reviews its application for a license to provide digital payment token services.

According to official news from the UK’s Financial Conduct Authority (FCA) on June 26, the FCA is issuing warnings to Binance Markets Limited and Binance Group that none of the Binance Group entities hold any form of UK authorization, registration or license to conduct regulated activities in the UK, and The FCA also clarified that its warning did not amount to a “ban” on Binance in the UK, but that all the FCA was doing was preventing Binance Markets Limited from offering regulated products and services to UK consumers. Limited from offering regulated activities to UK consumers.

Binance’s response.

The notice from the Financial Conduct Authority (FCA) has no direct impact on the services offered by Binance. The Group acquired BML in May 2020, but did not launch its business in the UK and is not subject to the FCA’s regulatory clearance.

Cayman Islands
On July 1, Binance, Binance Group and Binance Holdings Limited were not registered, licensed, regulated or otherwise authorized by the Authority to operate a cryptocurrency exchange in the Cayman Islands or within the Cayman Islands, according to an announcement on the official website of the Cayman Islands Monetary Authority. The Authority reiterates that Binance, Binance Group and Binance Holdings Limited are not subject to any regulatory oversight by the Authority. The Authority is currently investigating whether Binance, the Binance Group and Binance Holdings Limited or any other company associated with the group of companies is operating in or from the Cayman Islands any activity that may fall within the regulatory oversight of the Authority.

Binance Response.

Binance owns entities incorporated under the laws of the Cayman Islands and engages in activities permitted by law, unrelated to cryptocurrency trading activities.

On June 25, Japan’s Financial Services Agency issued a warning to Binance Holdings Ltd. that Binance was providing crypto services without being registered.

What happened to Binance when all countries were in trouble at the same time?
What is the reason for the sudden crackdown on Binance by so many national regulators, and is there a “tacit agreement” between countries?

Adam Cochran, partner at crypto investor Cinneamhain Ventures, tweeted about this today.

The reasons behind the intensive investigation of Binance by regulators in many countries are revealed

The pursuit (or distancing) of Binance by global regulators this week is alarming.

At such a multinational level, it doesn’t seem to make sense to say that there is only “friendly” international regulatory coordination.

Financial regulators don’t usually cooperate on pass-through enforcement unless they are going after large criminal groups.

It is unlikely that all of these agencies will decide to coordinate the implementation of their countermeasures.

For this reason, it feels like.

1) a large country wants to crack down on a specific regulatory target, or even a legal/criminal case against them, and calls on/pressures other regulators to coordinate


2) some cooperation between countries to go after some criminal organization that uses/exploits Binance internationally and puts legal pressure on Binance to help solve the case.

However, it is also entirely possible that

3) For the first time, we are seeing unprecedented regulatory coordination among regulators due to the unique international nature of cryptocurrencies.

Either way it’s strange. We certainly haven’t seen anything like this coordination between so many regulators and countries at the same time before.

It will be interesting to see how Binance responds and if there is any other news.

As a reminder, so far we have seen specific actions from the US, UK, Japan, Cayman Islands, Singapore and Thailand, as well as the Canadian OSC banning the use of Binance in Ontario, Canada.

Most likely, Binance made the mistake of expanding too quickly in an industry that is regulated in a gray area and now they must work to comply with local regulations.

However, the timing of the regulator’s action will certainly raise eyebrows and point to something more coordinated.

If nothing else, it’s actually more worrisome for what could be the next exchange to be put on the chopping block.

Posted by:CoinYuppie,Reprinted with attribution to:
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