Binance, the world’s largest cryptocurrency exchange, is facing legal risks such as accusations of money laundering and illegal securities offerings, as the Securities and Exchange Commission (SEC) is focusing its attention on every exchange operating in the United States.
The news was first reported by Forbes on Thursday, with the original source coming from Senator Lummis’ staff.
Since the Ripple case became public, all Coinbase and Binance activity has been conducted with caution and in compliance with regulations. Binance launched Binance.US with limited offerings for customers in the United States.
Ex Post Facto Much?
Nobody wants to become the “Second Ripple.” The SEC-Ripple legal battle began in December 2020 and shows no signs of ending before late 2022.
Unlike the Commodity Futures Trading Commission (CFTC), the SEC has a negative attitude toward cryptocurrencies. The SEC suspected the NFT of violating global stock market terms in early March.
In the first crypto-related insider trading case, the SEC charged the former Coinbase executive and two others with wire fraud in July. The SEC’s approach to the industry is far from centered on developing transparent regulatory rules.
All SEC allegations are most likely related to securities, despite the fact that Bitcoin and Ethereum have not been designated as security assets. In that sense, the SEC is over-regulatory.
In a statement, Republican Senator Tom Emmer said the agency and its chair were “hellbent on…
