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Binance, the world's largest cryptocurrency exchange, is facing unprecedented regulatory scrutiny. On Friday local time, the Securities and Futures Commission of Thailand filed a criminal lawsuit against Binance, accusing Binance of operating a digital asset business in Thailand without a business license. The Securities and Futures Commission of Thailand stated that only licensed companies can provide services related to digital asset trading in Thailand. It sent a letter to warn Binance in April this year, but received no response. According to media reports, the United States has expanded its investigation into Binance and is currently investigating possible insider trading and market manipulation. This may put more pressure on the cryptocurrency exchange, which has become the target of regulatory scrutiny in many countries, and is also the latest sign of increased regulatory scrutiny of the world's largest cryptocurrency exchange. US is investigating possible insider trading at Binance People familiar with the matter said U.S. authorities are investigating whether Binance or its employees profited by exploiting customer trading information. In response, a Binance spokesperson said in a statement that the company has a "zero tolerance" policy on insider trading and has established a "strict code of ethics" to prevent any behavior that could harm customers or the industry. The review also involves investigators from the Commodity Futures Trading Commission (CFTC), who have been contacting potential witnesses in recent weeks. The CFTC has been investigating Binance for allowing U.S. customers to trade derivatives without CFTC oversight, the report said. Judging from the statements of regulators, it seems that it is only a matter of time before digital currencies are fully incorporated into the existing regulatory system. Gary Gensler, chairman of the U.S. Securities and Exchange Commission, has repeatedly discussed the need to strengthen supervision of cryptocurrency exchanges to protect investors. He believes that many of the thousands of cryptocurrencies currently traded on exchanges are unregistered securities and should be subject to the SEC's enforcement jurisdiction. Global digital cryptocurrency regulation is tightening As the cryptocurrency industry grows in size and triggers many speculative and risky behaviors, regulators around the world are eyeing this field, and Binance, the largest cryptocurrency exchange, is the first to bear the brunt. At present, the total value of Bitcoin has reached nearly one trillion US dollars, and some large cryptocurrency exchanges even allow 100 times leverage. In recent times, Binance has been warned and restricted by financial regulators in countries such as the UK, Germany and Japan, who are concerned that the platform is being used for money laundering and poses risks to consumers. In mid-August, Binance said that all new users must provide proof of identity and photos of themselves to verify their identities. In Asia, Singapore’s financial regulator said on Thursday it will review Binance Holdings’ subsidiary in Singapore after the exchange’s parent company came under scrutiny from regulators around the world. The Financial Services Agency (FSA) of Japan previously issued a formal warning letter, stating that Binance Holdings Limited, a subsidiary of Binance, was operating a digital asset trading business without being registered in Japan. Binance was warned for the same reason in March 2018. In Europe, the UK Financial Conduct Authority (FCA) stated on its official website on June 25 that Binance Markets, Binance's holding company in the UK, is not allowed to conduct any financial business regulated by the FCA in the UK, nor can it provide loan services to individual customers. In North America, Binance told corporate account holders that Ontario will be included in the "restricted jurisdiction" scope starting June 26, and customers in the province are advised to close their trading accounts before December 31 this year. The latest action against Binance shows that exchanges cannot circumvent national laws by operating in other jurisdictions. Investors need to use cryptocurrency exchanges licensed in their country to avoid the risk of their assets being frozen or even confiscated. |
