We encourage you to do your own research before investing. It can be seen that although Binance has taken quick actions to deny the allegations to reassure investors, in the face of a strong opponent like the SEC, the exchange will still have to bear the loss, not small at all.ĭISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. According to a report from Kaiko, the market share of Binance US dropped more than 20% to around 0.9% at the end of June 26. These adverse factors have caused the market share of Binance.US to be said to have plummeted to a record. At the same time, the SEC also accused Binance of violating securities regulations for many years, disregarding local laws and evading regulatory scrutiny. The 13 charges, including operating a “scam website” and “calculated circumvention,” have put more pressure on the world’s largest cryptocurrency exchange. Binance US has faced many difficulties recently, from the fact that Binance US was sued by the SEC, having to stop trading crypto with USD, and the price of trading pairs on Binance US is different from reality.
At the time, Binance publicly disputed the article.The company was valued at $4.5 billion by investors last year, but it’s been struggling lately. anti-money laundering laws and sanctions, but was split over whether to conclude the investigation or continue reviewing evidence. Department of Justice was investigating Binance since 2018 over compliance with U.S.
In December, Reuters reported that the U.S. The outcome could range from “like a fine” to “could be more.” Patrick Hillman, Binance chief strategy officer, said the company’s executives were unfamiliar with laws and rules written surrounding bribery, corruption and money laundering.īinance is “working with regulators to figure out what are the remediations we have to go through now to make amends for that,” Hillman said. Separately, last month a Binance executive shared it expected to pay monetary penalties to settle probes into its business in the U.S. law, including by assisting and instructing customers located in the United States to evade the compliance controls Binance purported to implement to prevent and detect violations of U.S. However, Zhao and other involved parties in Binance’s senior management have “failed to properly supervise Binance’s activities and activities and, indeed, have actively facilitated violations of U.S. The best path forward is to protect our users and to collaborate with regulators to develop a clear, thoughtful regulatory regime.”īinance has spent $80 million on external partners like KYC vendors, transaction monitoring, market surveillance and investigative tools to support its compliance programs, the spokesperson added. “Nevertheless, we intend to continue to collaborate with regulators in the US and around the world. And in recent weeks, since the Commodity Futures. Zhao has been trying to sell at least some of his stake since last summer, one of the people said.
“ This filing is unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years,” a Binance spokesperson said to TechCrunch. Binance.US and Changpeng Zhao, the crypto exchange’s founder, majority owner and chair, have been exploring ways to reduce his stake in the company, two people familiar with the matter said. Of that amount, about 16% of Binance’s accounts were held by U.S. In May 2021, Binance’s monthly revenue earned $1.14 billion from derivatives transactions, up from $63 million in August 2020, the CFTC noted. It launched in June 2017 and within 180 days became the largest crypto exchange in the world. financial markets, including laws that implement controls to prevent and detect money laundering, terrorism financing, among other aspects, the filing states.īinance is the world’s largest crypto exchange by trading volume, with about $9 billion in trading volume in the past 24 hours and over 90 million customers globally, according to CoinMarketCap data.
The exchange has never registered with the CFTC in any capacity and has “disregarded federal laws” for U.S. The company, Zhao, Lim are being sued for allegedly breaking trading and derivatives rules. Commodity Futures and Trading Commission, according to a filing on Monday. Binance, the world’s largest crypto exchange by volume its CEO Changpeng Zhao and Chief Compliance Officer Samuel Lim, are being sued by the U.S.
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