Binance finds itself deep in the regulatory grinder

A good number of regulators have raised the alarm, made public their inquiries or simply warned investors about crypto exchange giant Binance and its different affiliates. Analysts are wondering if the “ruckus” is part of a coordinated global movement – or just a coincidence?

Binance has hogged the headlines of late. Many countries have signified their intent to investigate the crypto exchange, currently the biggest in the world in terms of the trading volume.

Due to a large-scale bitcoin selloff as a result of crypto prices collapsing back in May, multiple crypto exchanges including Coinbase, Gemini, Binance, and Kraken suffered technical glitches.

Now, some investors want their money back and the only way to do that is to file a class action suit, specifically against Binance.

Cutting Binance off

Over the last few weeks, regulators in a handful of different countries claimed Binance doesn’t have the authority to operate within their borders.

Several financial institutions or payment processors, mainly in Britain, have subsequently cut off the exchange, dealing a heavy blow to its clients.

Japan’s Financial Services Agency (FSA) warned that Binance is not registered to operate within its jurisdiction.

The Cayman Islands also announced that Binance Holdings and Binance Group are not authorized to do business in the country.

Banks in South Africa disabled credit card transactions for foreign crypto exchanges, including Binance.

And then, there’s Silvergate Bank, among many others, who suspended withdrawals and deposits for Binance.

More room to mature

“As a four-year-old startup, Binance still has a lot of room to grow. Binance has grown very quickly and we haven’t always got everything exactly right,” Binance chief executive Changpeng Zhao said in remarks quoted by GoBankingRates.

Meanwhile, Italian law firm Lexia Avvocati – in tandem with the Swiss Blockchain Consortium (SBC) – was authorized last week by a group of Italian and foreign investors to carry out legal action against Binance.

The objective of the class-action lawsuit is to obtain – among other things – damages suffered by investors on the “Binance Futures” platform as a result of the breach of the policies on trading.


Image courtesy of Cointelegraph News/YouTube

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