Crypto exchange Binance seems to be in deep water facing accusations from regulators worldwide. On Friday, July 2, the Thai Securities and Exchange Commission (SEC) announced that it has filed a criminal complaint against Binance for illegally operating its digital assets business.
Upon investigation, the regulator found that Binance provided crypto trading services “by matching orders or arranging for the counterparties or providing the system or facilitating entry into an agreement or match the order for persons who wish to trade or exchange digital assets”.
The Thai SEC added that by doing so, the crypto exchanges requested the Thai public and investors of using its services. The regulator further stressed that it had issued a warning letter to Binance on 5th April 2021, however, the exchange failed to submit the response in the desired timeframe. In the press release, the Thai SEC notes:
“The aforementioned activities of Binance is liable to operating digital asset business in the category of digital asset exchange without license, which is a violation of, or failure to comply with, Section 26 and is liable to criminal sanction under Section 66 of the Digital Asset Businesses Emergency Decree.”
The regulator noted that this can lead to imprisonment for two to five years along with a fine amount of 200,000 to 500,000 baht. Thai SEC noted that a criminal complaint will just begin criminal proceedings against Binance, however, the decision and power to adjudicate lies with the court.
Mounting Trouble for Binance
Crypto exchange Binance is facing strong regulatory backlash across the globe. Last week, the U.K FCA issued a ban on Binance from conducting its operations. Following this, several payment networks and banking companies operating in the U.K. limited the fund flow to the Binance exchange.
Earlier today, as CoinGape reported, Singapore regulator – Monetary Authority of Singapore (MAS) – noted that it will soon start the regulatory review for Binance as it faces major charges worldwide. At the same time, Cayman Island authorities also initiated an investigation into the crypto exchange.
Over the last few weeks, regulators from Germany and Japan have also warned Binance on conducting its operations.