The Securities and Exchange Commission has filed criminal charges against Binance for providing services to Thai investors without a license.
This follows various regulatory agencies’ recent crackdowns on the exchange in cases involving money laundering and unlicensed operations.
Binance has recently been the target of a slew of regulatory investigations including money laundering, tax evasion, and unauthorized operations. The Securities and Exchange Commission (SEC) has filed a criminal complaint against Binance for operating without a license in Thailand, just days after the UK’s Financial Conduct Authority (FCA) issued the exchange with a consumer warning notice.
Binance provides trading and exchange services for anyone who want to trade or exchange digital assets via its website by matching orders, organizing counterparties, offering the system, facilitating entrance into an agreement, or matching the order.
According to the investigation, Binance solicits the Thai public and investors to use its services through a Facebook page named Binance Thai Community, despite the fact that it does not have a license to do so. Binance has so broken or failed to follow Section 26 of the Securities and Exchange Commission’s legislation, putting them susceptible to criminal penalties under Section 66 of the Digital Asset Businesses Emergency Decree. Violations of these laws can result in prison sentences ranging from two to five years, as well as fines ranging from 200,000 to 500,000 Thai Baht ($6220 to $15,550). Fines of not more than 10,000 Baht ($311) per day are also enforced if the violation continues.
According to the paper, the SEC sent Binance a warning letter on April 5, 2021, requesting a written answer. However, the response did not arrive within the time frame requested.
International regulators are looking into Binance.
The filing of a criminal complaint is described as the start of the criminal process. The case will next be investigated by inquiry officials before being handed over to the public attorney.
The SEC wants to underline that the Digital Asset Business Emergency Decree regulates digital asset enterprises. Only those who have secured the necessary licenses under the legislation are permitted to perform services relating to digital asset trading, exchange, depository, transfer, withdrawal, or any other digital asset activity. Penalties may be imposed on those who break the law.
The Financial Service Agency (FSA) of Japan recently joined the UK in warning the public that Binance is operating without a license. Binance, together with Gemini Trust Co. LLC and Hong Kong-based Crypto.com, are currently working to obtain a license that will allow them to operate legally in Singapore.
This came after the Singapore financial regulatory authority announced that it is investigating the exchange’s operations 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 analyzes its application. The application review will be held to rigorous standards, according to MAS.
After the Canadian Securities Administrators issued a warning to crypto trading firms to register with the Ontario Securities Commission by April 21, the exchange has suspended operations in Ontario, Canada.
Binance, the Binance Group, and Binance Holdings are not “registered, regulated, licensed, or otherwise authorize” to operate a cryptocurrency exchange from or within the Cayman Islands, according to the Cayman Islands Monetary Authority (CIMA).
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