Binance US, the American branch of the global cryptocurrency giant Binance, is reportedly accused of running an unregistered securities exchange. This news comes as a shock to the American crypto community. Thanks to the SEC’s scrutiny of companies that violate securities laws in the cryptocurrency space as this revelation is part of this ongoing clampdown conducted by the SEC.
What are the SEC’s claims?
The SEC claims that Binance US is facilitating the service to buy and sell securities without registering with the agency. During the bankruptcy hearing SEC staff alleged that Binance US seeks to involve in broker-dealer activity, yet fails to accomplish the task. Furthermore, SEC’s claims also revealed that the transaction of VGX tokens by Voyager Digital breached federal securities laws.
What is Binance’s Response on these Allegations?
Binance US has shown its displeasure against SEC’s claims and denied the allegations, advising the staff to specify the assets listed on their exchange that the SEC recognized as securities. It is difficult at this time to speculate how this impact to Binance US clients. However, it is possible that the SEC’s claims could lead to legal action against the crypto giant.
It is also possible that Binance US could be compelled to register with the SEC to work in the United States.It will be very interesting to see what the aftereffect of this investigation will be, but it is clear that the agency has currently no intentions to halt its operations against exchanges that run its businesses outside of the law in the cryptocurrency space.