SEC targets Binance and BNB coin

US regulators are once again looking into Binance Holdings Ltd and specifically whether the cryptocurrency exchange broke securities laws by selling digital tokens.

The investigation focuses on events that took place nearly five years ago, Bloomberg reported citing people close to the matter.

The US Securities and Exchange Commission (SEC) is reviewing the BNB token, which currently stands as the world’s fifth biggest cryptocurrency available to consumers.

The initial coin offering (ICO) launched back in 2017 may have breached several securities laws, investigators seem to suggest.

Media sources have preferred to stay anonymous, but they said that SEC is actively investigating the company.

As a result, Binance is now facing multiple investigations from regulators. BNB’s ICO is reminiscent of that of Ripple Labs’, which has also been in hot water with SEC over the past several years.

“It would not be appropriate for us to comment on our ongoing conversations with regulators, which include education, assistance, and voluntary responses to information requests”, Binance said in a brief statement.

Binance assured that it’s fully prepared to cooperate with authorities in all matters and would continue to do so when requested by a regulator.

One of Binance’s defenses is that it’s not domiciled in any country but runs affiliates and subsidiaries across multiple jurisdictions. It’s a testy approach that has already seen pushback from authorities in the UK and Singapore.

Binance insists that Binance.com and Binance.US are two separate and independent entities. “Binance.US is a separate US-focused trading platform that services US users by offering products and services that are compliant with US federal and state regulations”, the company clarified.

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Source

Updated: 06/07/2022 — 19:00