Cryptocurrencies, all Binance’s legal woes
After the shutdown in the UK, some investors are suing Binance, one of the largest cryptocurrency exchange platforms in the world. Here because
Earthquake in the world of cryptocurrencies with the Binance platform as its epicenter.
A group of Italian and international investors has initiated legal action against Binance, active in cryptocurrencies, to obtain a refund of the invested capital. This is stated in a note released by the Lexia Avvocati law firm – taken up by Ansa – which received the assignment and acts in collaboration with the Swiss Blockchain Consortium.
The lawsuit comes a week after the UK's financial regulator (FCA) banned transactions on Binance.
"Obviously, this is only a cause, as there are so many" highlights Il Sole 24 Ore. "But it also fits into the security debate in the cryptocurrency world."
Meanwhile, Barclays yesterday blocked UK clients from sending funds to Binance.
In addition to the UK, the platform is also facing intense regulatory scrutiny in Canada, Thailand, the Cayman Islands, Japan and the United States.
All the details.
THE CAUSE INTRODUCED BY INVESTORS
In addition to the reimbursement of the capital invested, the investors also ask Binance for compensation for the damages suffered "as a result of the violation of the rules on trading and public offering of financial derivative instruments 'futures' on cryptocurrencies".
At Binance, investors also complain about anomalies in the functioning of the trading platform.
WHAT IS BINANCE
Binance was founded in 2017 in China by Changpeng Zhao and Yi He; it subsequently moved its headquarters to the Cayman Islands to escape the Chinese cryptocurrency squeeze , judged to cause instability in the financial system.
Binance.com is a centralized online exchange that offers users a range of financial products and services, including buying and trading a wide range of digital currencies, as well as digital wallets, futures, stocks, savings accounts and even loans.
It has quickly become the leading cryptocurrency spot exchange in the world thanks to its incentives, such as Binance Coin, and lower fees.
As the FT recalls, the group, which lacks a formal location, connects to the conventional financial market through a number of global affiliates. In Europe, affiliates have partnered with UK-based payment providers, including Checkout.com and Clear Junction, which allow hard currencies to flow to and from the platform.
THE STOP FROM FCA
In a note dated June 25, the FCA said Binance Markets Ltd – the subsidiary of the company that operates in the UK – cannot carry out any regulated activity in the UK without the prior written consent of the authority.
Reuters explained that the cryptocurrency exchange is not directly regulated in the UK, but offering cryptocurrency derivatives trading services requires authorization.
In addition to banning Binance from trading in the UK, the regulator had ordered its UK division to stop all forms of advertising until June 30.
THE BARCLAYS DECISION
But it doesn't stop there. Just yesterday Barclays notified clients of the ban on debit and credit payments to Binance.
"This action has no impact on clients' ability to withdraw funds from Binance," the London-based bank said. "The decision was made following FCA's warning to consumers."
UNDER INVESTIGATION IN THE UNITED STATES
In addition, even in the United States, one of the group's affiliates, Binance Holdings, is being investigated by the United States Department of Justice and the tax authority, as reported in May by Bloomberg .
THE WITHDRAWAL FROM CANADA
On June 26, Binance announced that it would withdraw from Ontario, Canada. The move comes after the Ontario Securities Commission (OSC) accused Binance and several other cryptocurrency trading platforms of failing to comply with regulations.
THE WARNING IN JAPAN
Also in late June, Japan's Financial Services Agency (FSA) warned Binance for the second time in three years that it is operating in the country without a permit.
THE INVESTIGATION IN THAILAND
Finally, Thailand's Securities and Exchange Commission filed a criminal complaint against Binance on Friday with a division of the Royal Thai Police. The charge is that he ran a digital asset business in the country without a license.
The Cayman Islands financial regulator said the platform was not licensed to operate in the territory.
Meanwhile, trading volume over the weekend of July 4 on the platform fell by about 18%, according to data from Binance-owned CoinMarketCap.com. The price of Binance Coin, linked to the exchange, fell by about 2%, while Bitcoin remained little changed on Friday.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/criptovalute-tutti-i-guai-legali-di-binance/ on Tue, 06 Jul 2021 11:03:19 +0000.