The SEC fleas Binance. What is the biggest cryptocurrency exchange platform up to?
Why the Securities and Exchange Commission (SEC) accuses Binance, the largest cryptocurrency exchange platform
The accusations that the Securities and exchange commission makes against Binance, the largest cryptocurrency exchange platform, and in particular its CEO and founder Changpeng Zhao are serious and appear to be circumstantial.
THE SEC'S ACCUSATIONS AGAINST BINANCE
According to the Sec, Binance allegedly violated federal laws on financial products: "blatant disregard of the federal securities laws", the words used by officials of the body that supervises stock exchanges in the indictment document presented in the District Court of Columbia. In short, not simple and perhaps random violations, but he recognized a "blatant contempt" of federal regulations to protect investors. Dominus of the operation would have been the CEO: "We maintain that Zhao and Binance knew the rules but consciously chose to evade them and put their customers and investors at risk," says the Sec.
Coming to the merits of the matter, according to the Sec, Binance would have urged US investors to "buy, sell and exchange" crypto asset securities through unregistered online trading platforms available at Binance.com and Binance.Us.
The exchange said it had carried out never-before-executed checks on bans on US citizens trading on the .com platform and, more importantly, mixed "billions of dollars" of client funds secretly sent to a separate company controlled by the founder and director company delegate, Changpeng Zhao. Following the many scandals in the crypto world in recent months, the MiCa regulation has recently been approved in Europe. In America, on the other hand, at the moment the controls delegated to the SEC are preferred to the legislative route, as demonstrated by the accusations against Binance.
THE REPLY AND THE POSSIBLE DEFENSE STRATEGY
If the Sec used unusually harsh words in defining the conduct that Binance allegedly engaged in, the company's reply was not long in coming and was just as vehement.
"The lawsuit is unfounded." Thus Binance quickly dismissed the institution's arguments by classifying them as mere inferences. And the group has made it known that it intends to defend itself "vigorously". “Any accusation that users' assets on Binance.Us have been put at risk is simply wrong.” But above all the leaders seem to focus on one point: Binance, "cannot be considered a US stock exchange and", therefore, "the power of action of the SEC is limited". That the real strategy of the platform is hidden in those words and focuses on a lack of territorial jurisdiction?
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/la-sec-fa-le-pulci-a-binance-che-combina-la-maggiore-piattaforma-di-scambio-di-criptovalute/ on Tue, 06 Jun 2023 11:14:31 +0000.