Two Financial Regulatory Bodies Keep Binance Under Surveillance

Two Financial Regulatory Bodies Keep Binance Under Surveillance

Binance, a major cryptocurrency firm has in recent times been under heavy inspection from the financial supervisory bodies of some countries regarding the lawfulness of its transactions. The Securities and Exchange Commission (SEC) of Thailand and the islands Monetary Authority of Cayman (CIMA) are top on the list of supervisory bodies who are currently on Binance matter.

The SEC on Friday said that the commission took legal action against Binance because the crypto firm has been running without a license. The supervisory body said that it had in April given a cautionary notice to Binance and had demanded them to respond formally through writing. However, Binance according to the commission did not do so within the given time. SEC reiterated that only firms with licenses are expected to offer services, deviation from this will attract sanction.

SEC’s pronouncement came 24 hours after the CIMA of Cayman stated that Binance was not officially recognized as it was unregistered and functioning without a permit. Hence, CIMA said that it had no legal standing to run crypto affairs in Cayman. The Cayman’s regulatory body said that any firm officially attached to Binance situated within Cayman will also come under their investigative lens. CIMA emphasized that crypto- based enterprises operating within the Island must do so based on the approval of the appropriate authorities.


A Binance representative in an interview with Cointelegraph said that the firm’s operations had always been decentralized. The firm has however repudiated claims of operating illegally in Cayman. Binance has been striving to find a perfect ground for its operations since it was founded. The firm was established in China in the year 2017 but was forced to exit the country following the Chinese crypto proscription of 2017. Binance was then transferred to other regions with its head office situated at Cayman Islands and Seychelles as of February last year.

Binance is reputed for having many enterprises scattered across the globe. It was in the past reported they had their headquarters in Malta but the financial regulatory authority of the region had in February stated that the firm was never granted permission to run their business there. Binance has faced scrutiny from regulatory bodies in different countries of the world. Bloomberg on Thursday said that the financial authority of Singapore plans to modify Binance’s licensed mode of operations as the mother company is under close monitor by the international community


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