Binance, the world’s largest cryptocurrency exchange, is facing mounting regulatory challenges in Europe and the United States after the U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against the company on June 5. French authorities are investigating the company for “serious money laundering” and other illegal activities related to digital asset services, Le Monde reported. Meanwhile, Binance is preparing to exit the Netherlands after failing to obtain a virtual asset service provider (VASP) license, the company explained in a blog post on June 16. In addition to this, Binance’s U.S. subsidiary reportedly fired 50 employees amid allegations from the SEC.
troubled world
In France, the Judiciary-Financial Investigation Service is investigating Binance for alleged breaches of know-your-customer (KYC) checks and illegal advertising, at the request of the specialized interregional jurisdiction (JIRS) in Paris. The investigation was submitted to the Service d’Enquêtes Judiciaires des Finances (SEJF), the government agency that oversees financial crime, in February 2022, according to information provided to CoinDesk.Binance France president David Prinçay confirmed that authorities visited the exchange last week and means Binance Been fully cooperative in recent Twitter posts. In the Netherlands, Binance announced its decision to terminate its operations after failing to obtain a VASP license. The exchange has stopped registering new users in the country and will cease trading from July 17, with existing users having the option to withdraw funds from the platform. The company also announced that it will stop withdrawals from its U.S. platform on June 9. ,” the company wrote in a blog post explaining the development. “Binance will continue to work on obtaining authorization to offer our products and services to users in the Netherlands. Binance affiliates have reportedly fired about 50 employees after the SEC filed legal action against the company. The regulator accused Binance and its founder and CEO Changpeng Zhao of creating Binance.US as a “deception network.” ” to circumvent securities laws designed to protect U.S. investors. The regulator also sued BAM Trading, the operator of Binance.US, claiming it misled investors about its trading controls and asked a federal court to freeze the platform’s assets. These include more than $2.2 billion in encrypted assets and $377 million in U.S. dollar bank accounts. These developments deal a further blow to Binance, which has been facing increasing scrutiny from regulators around the world. Despite these challenges, the currency Ann claimed that it is fully committed to working with regulators and law enforcement agencies to meet compliance requirements. The company also emphasized its compliance with EU standards on preventing money laundering and terrorist financing, and highlighted its registrations in other European countries, including France, Spain, Italy, Poland, Lithuania and Sweden. As the regulatory environment for cryptocurrencies continues to evolve, there is a lot of speculation inside and outside of Web3 about how the industry will move forward, especially as U.S. legal experts predict the SEC will only continue its “enforcement “Regulatory” strategy. However, recent revelations about the agency’s decision-making process regarding the classification of crypto tokens could change the final outcome of its court battle. Editor’s note: This article was written by nft now staff in collaboration with OpenAI’s GPT-4.
