Binance has recently become the subject of numerous investigations by regulatory bodies in cases involving money laundering, tax evasion, and unlicensed trading. Just days after the UK's Financial Conduct Agency (FCA) delivered a consumer advisory notice to the exchange, the Securities and Exchange Commission (SEC) also filed a criminal complaint against Binance for operating without a license in Thailand.
Binance provides trading and exchange services through its website by:
"Match orders or make arrangements for counterparties or provide the system or facilitate the conclusion of an agreement or match the order for people who wish to trade or exchange digital assets."
The investigation reveals that Binance requests the Thai public and investors through a Facebook page called the Binance Thai Community, to use its services as long as it is not licensed to operate. In doing so, Binance has violated or failed to comply with section 26 of the SEC laws, making them subject to criminal penalties under Section 66 of the Digital Asset Business Emergency Decree. Violators of these sections are subject to two to five years in prison and a fine of 200,000 to 500,000 Thai baht ($ 6,220 to $ 15,550). Daily fines of no more than 10,000 baht ($ 311) are also imposed, during which the violation continues.
According to the document, the SEC submitted a warning letter to Binance on April 5, 2021 demanding a written response. However, the response was not received within the specified time.
Binance is being investigated by international regulators
The filing of a criminal complaint is explained as the beginning of the criminal process. Investigating officials will investigate the case before asking the public attorney to take over.
“The SEC wishes to emphasize that digital asset businesses are regulated by the Digital Asset Business Emergency Decree. Only providers that have obtained the relevant licenses according to the law can provide services related to trade, exchange, deposit, transfer, withdrawal or any transaction related to digital assets. Violators may be subject to sanctions according to the law ”.
Recently, Japan's Financial Services Agency (FSA) joined the UK in warning the public that Binance is operating without a license. As it stands, Binance, along with Hong Kong-based Gemini Trust Co. LLC and Crypto.com, hope to obtain a license to legitimize their Singapore operation.
This followed a statement from Singapore's financial regulator that they are investigating the exchange's operations following recent action taken by international regulatory authorities. For now, the Monetary Authority of Singapore (MAS) has authorized Binance to continue its operation while it reviews your application. According to MAS, the application review will be subject to high standards.
The exchange has currently ceased operation in Ontario, Canada, after Canadian Securities Administrators issued a warning to cryptocurrency trading companies to register with the Ontario Securities Commission before April 21.
On Thursday, the Cayman Islands Monetary Authority (CIMA) also announced that Binance, Binance Group, and Binance Holdings are not "registered, regulated, licensed, or otherwise authorized" to operate a cryptocurrency exchange from or within the Cayman Islands. .