US SEC gets European Union’s backing while scrutinizing Binance in their recent ongoing lawsuit.
Key Points
- The US SEC ongoing investigation into Binance, and its founder, Changpeng Zhao, has received backing from the European Union.
- The SEC has accused Binance of mishandling customer funds, and misleading investors about its market surveillance controls.
- The EU’s support for the SEC’s investigation suggests a possible increase in international cooperation for regulating the crypto market.
The United States Securities and Exchange Commission (U.S. SEC) had previously filed a lawsuit against Binance, a major cryptocurrency exchange. However, the crypto community has rallied behind Binance, offering their support. Having said that, recently the European Union has also gotten into action, as the European-based financial regulators and police are now involved in investigating Binance alongside the SEC.
The SEC has sought assistance from European nations in processing Binance’s information. While some European countries have urged action to be taken in line with the SEC’s stance, others are taking a more cautious approach, assessing the criticality of the Binance case before making any decisions.
This ongoing investigation has sparked interest and concern among those in the cryptocurrency industry, and many are following the developments closely. As the situation continues to unfold, it remains to be seen how it will impact the wider crypto community and the future of cryptocurrency regulation.
— Protos (@Protos) June 19, 2023
Binance Going Strong in Europe
Interestingly, Changpeng Zhao, the CEO of Binance, recently disclosed that the French police had launched an investigation into the cryptocurrency exchange in 2022 for alleged money laundering activities. This news has sent shockwaves across the industry, raising questions about the legality and transparency of the operations of one of the world’s largest crypto exchanges. It’s not just France that’s cracking down on Binance.
Some countries, like Cyprus, are on the verge of revoking the exchange’s license. Even in Europe, where Binance has been trying to register in countries like the UK and Ireland, there are strict criteria for obtaining licenses for crypto exchanges. Despite this, Binance seems to have other plans.
According to reports, Binance-registered firms in Europe have been generating revenue in the range of a few thousand to half a million Euros. This amounts to a staggering 200 million Euros, or roughly 218 million dollars, per year. It’s no wonder that Binance has been trying to expand its operations in Europe.
However, there are concerns about the transparency of Binance’s operations in Europe. Guangying Chen, a shareholder in several Binance-registered firms, is a Chinese passport holder who registered in Singapore. Binance, on the other hand, claims that she is a European passport holder. This discrepancy has raised questions about the legitimacy of Binance’s operations in Europe and the transparency of its shareholder base.
End Note
This tussle between Binance and SEC has been going on for a year now. And, with this recent support from the European Union to the SEC, things might get worse for Binance. As the investigation into Binance’s operations continues, the industry is watching closely to see how this will play out. Will Binance be able to weather this storm, or will it be forced to make significant changes to its operations and business practices? Only time will tell.
