Haunted by the Past
The BNB Coin which holds fifth place in the ranking of largest cryptocurrencies has gained the attention of the US SEC. The Security and Exchange Commission is finally launching an inquiry into Binance’s activities in 2017. The Commission is investigating if the crypto issuer went against any law in the process of selling its BNB token five years ago.
BNB has become the second crypto asset to be so investigated by the Security Commission after XRP. The latest development might be a very troubling one for Binance. This is especially because it already has pending regulatory challenges around the world and in the US too.
The US SEC has intensified its efforts on enforcing rules on a number of ICOs. The major reason is their fund-raising methods.
Binance said to Bloomberg that it is currently not appropriate to disclose its conversations going on with regulators. Those conversations center around assistance, education, and willing answers to any requests.
The Binance platform said in addition that it will keep engaging with regulators and other authorities in the space. It also said it will keep meeting up with every requirement demanded by regulators. BNB is presently selling low by 7% at $285 with a market capitalization of $46.7 billion.
Is Binance Encountering More Troubles?
Binance as a crypto exchange has been confronting a lot of regulatory problems in the US. Apart from its case with the US SEC, it also has an investigation going on against it by the CFTC, IRS, and the Department of Justice.
Recent data reveals what might have seemed like Binance aiding a money-laundering move to the tune of $2.35 billion. With regard to the latest investigation by the US SEC, there are feeders that the company might not be sued by the Commission. Nevertheless, the company might also get tossed the ordeal of Ripple in a long-drawn trial.
A source mentioned that aside from BNB, the US SEC is equally investigating the possibility of trading misdeeds. This involves insiders in Binance who possibly fixed trades. It is also investigating if Binance.US is properly hived from its other global counterparts.
Another source also stated that the US SEC is gazing at companies that make the market and are associated with Changpeng Zhao, Binance CEO. The Security and Exchange Commission is interested in looking into ownership shares linked with Zhao in the market makers in Binance US.