The US Securities and Exchange Commission (SEC) is reportedly taking enforcement action against the world’s largest crypto exchange Binance. However, it’s unclear whether Binance or Binance.US is in the SEC’s crosshair.
After a series of attacks against crypto exchanges Coinbase, Bittrex, Kraken, and other entities related to crypto, the securities regulator has set eyes to bring action against Binance or Binance.US.
Crypto exchange Binance has been under heightened scrutiny since the collapse of FTX. In March, the U.S. CFTC filed an enforcement action against Binance and CEO Changpeng “CZ” Zhao in March for violating commodities laws and operating an illegal derivatives exchange. The DOJ is also probing Binance for several matters, including violating sanctions against Russia.
Andrew in a tweet on May 8 said the SEC is almost close to taking action against Binance.US or Binance. The SEC may also bring changes against Binance CEO “CZ” for violating securities laws and failing to comply with the anti-money laundering (AML) rule.
He warned that the US Dept. of Justice (DOJ) could also be part of investigations against Binance after the SEC brings an enforcement action.
Recently, the SEC sent a Wells notice to Coinbase warning an enforcement action against the exchange for listing securities and staking services. Coinbase said the SEC action will have no impact as the exchange doesn’t list securities and blasted SEC for lack of clarity over digital asset regulations.
Coinbase followed a complaint seeking a response from the US SEC on questions sent last year regarding how government agencies use securities law for regulating digital assets. It also failed to provide clear guidelines and rules on crypto trading, listing, and staking.
A court has now ordered the SEC to respond to Coinbase’s writ of mandamus within 10 days. Coinbase may file a reply to the commission’s response within 7 days of the filing.
Also Read: Coinbase Legal Chief Takes Pre-Emptive Strike Against US SEC
Coingape reported that Binance decided to pause BTC withdrawals citing congestion on the Bitcoin blockchain. The spike in pending transactions and fees caused exchanges to delay or pause withdrawals.
Binance moved BTC worth nearly $5 billion to manage the current situation. The exchange revealed the outflows are actually movements between Binance hot and cold wallets due to the BTC address adjustments. The SEC could also take the point in its action against Binance.
Also Read: Coinbase CEO Brian Armstrong Heads To UAE For Strategic Developments
Senate Democrats and Republican lawmakers have ended separate roundtable meetings focused on the Crypto Market…
The crypto market has, for a while now, been pricing a potential 25 basis points…
Rowe Price has filed for its first actively managed crypto exchange-traded fund (ETF). It is…
Standard Chartered analyst Geoff Kendrick has predicted that the Bitcoin price could suffer a significant…
Crypto ownership is a topic that has been discussed across major forums globally in the…
Crypto exchange Robinhood has listed the Binance coin for spot trading for its U.S. customers.…