SEC Investigating Binance, Other Exchanges, Sen. Ramis Says

Binance, the world’s largest cryptocurrency exchange, faces legal risks, including accusations of money laundering and illegal securities offerings, as the Securities and Exchange Commission (SEC) turns its attention. per exchange Doing business in the United States.

The news was first reported by Forbes on Thursday. The original source is from Senator Ramis’ staff.

Since the Ripple incident went public, all Coinbase and Binance activities have been carefully and compliant. binance launch Binance.US Offers limited service for US customers.

Pretty much after the fact?

No one wants to be the “second ripple”. The legal battle between the SEC and Ripple began in December 2020 and shows no signs of ending by the end of 2022.

Unlike the Commodity Futures Trading Commission (CFTC), the SEC has a negative stance on cryptocurrencies. The SEC said in early March that he suspected NFTs of violating the terms of global stock markets.

In its first crypto-related insider trading case, the SEC indicted a former Coinbase executive and two others for wire fraud in July. The SEC’s approach to the industry is not focused on making transparent regulatory rules.

Despite the fact that Bitcoin and Ethereum are not designated as security assets, all SEC claims are most likely related to securities.

Republican Senator Tom Emmer said in a statement that the agency and its chairman are “enthusiastic to use law enforcement to unconstitutionally expand their jurisdiction.”

Regulate first, then enforce

The SEC has made waves in the cryptocurrency community.Lawmakers could hand over if things go too far Managing cryptocurrency regulation to CFTCPreviously, a bill was proposed to expand CFTC oversight of the cryptocurrency market.

Senators Cynthia M. Ramis and Senator Kirsten Gillibrand supported the proposal. But officials said the new bill is unlikely to pass parliament this year.

In the face of the SEC’s allegations, coin base We are happy to cooperate with any legal challenge.

Aside from the SEC move, there is also a gap in the US with no specific regulation for cryptocurrencies or clear boundaries for securities assets. Coinbase has a rigorous process of reviewing and analyzing its tokens before listing them on exchanges and they are reviewed by the SEC.

Earlier this month, the SEC filed a civil lawsuit against 11 people involved in a Ponzi scheme that defrauded them of more than $300 million.

According to an Aug. 1 filing, the SEC said the founders and promoters of the Forsage platform used a “fraud pyramid and multi-level Ponzi scheme” to raise money from millions of individual investors around the world. claims to have used

Two of the defendants did not admit or deny the charges, but instead agreed to a settlement contingent on the court’s decision. Forsage declined to provide a way to contact the company and was not immediately available for further comment.

Binance has been investigating the matter since last month. US regulators are investigating whether Binance Holdings Ltd, the world’s largest cryptocurrency exchange by trading volume, violated securities laws with his 2017 initial coin offering (ICO).

Where has the SEC been – so far

The SEC investigation focuses on the company’s origins and the origins of the BNB token, which is currently the world’s fifth largest cryptocurrency.

Authorities are investigating whether Binance’s 2017 BNB token issuance amounted to the sale of securities that should have been registered with the regulator.

In addition to BNB, the SEC is investigating possible trading abuse by Binance employees and whether the U.S. branch of Binance.US, which opened in 2019, is properly supported by global partners.

Binance, said: and Binance.US is a separate entity. Binance.US is another US-focused trading platform that offers products and services to US users and, of course, is subject to federal and state regulations. SEC Investigating Binance, Other Exchanges, Sen. Ramis Says

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