The Cayman Islands and Thai SEC joined the list of global regulators that are taking scrutiny against Binance as we can see more in the latest Binance news.
Binance is the leading crypto exchange by trading volume and continues facing scrutiny from regulators about the legality of operations in certain countries. The Cayman Islands and Thai SEC are among the regulators that are taking action against Binance, announcing a regulatory crackdown on the exchange. The Thai SEC announced that the agency filed a criminal complaint against binance and launched a criminal procedure investigation for operating a digital asset business without a license. The authority said that Binance provided crypto trading services via its website by “matching orders or arranging for the counterparties or providing the system or facilitating entry into an agreement.” the SEC noted:
“In so doing, Binance has solicited the Thai public and investors to use its services, either via its website or Facebook Page: Binance Thai Community.”
The regulator mentioned that it issued a warning letter to Binance requiring the exchange to submit a written response but the exchange failed to submit a response at a specific time. The agency noted:
“Only providers who have obtained relevant licenses under the law are allowed to provide services related to digital asset trading, exchange, depository, transfer, withdrawal or any transactions related to digital assets. Violators may be liable to penalties under the law.”
The Thai SEC’s announcement came a few days after Cayman’s CIMA announced that companies like Binance, that are not registered, not licensed or authorized, cannot operate as a crypto exchange from or within the Cayman Islands. CIMA noted that the regulator will be investigating other companies affiliated with Binance and activities that are operating in or from the Cayman Islands. The authority added that any crypto-related company incorporated under the Cayman Islands Companies Act has to be registered by the country’s virtual asset service provider act or any other existing regulated entity that the authority has granted a waiver under the act.
A Binance spokesperson said that crypto exchanges always operated in a decentralized manner but the representative denied the reports regarding Binance’s crypto operations in the Cayman Islands:
“We do, however, have entities incorporated under the laws of the Cayman Islands performing activities that are permitted by law and not related to operating crypto-exchange trading activities.”
The exchange has been struggling to find the right jurisdiction to operate in the crypto business. Founded in China before the state enforced a ban on trading in 2017, it moved overseas and based in Seychelles and the Cayman Islands.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]