Leading cryptocurrency exchange Binance has continued to come under fire from regulators regarding the legality of its operations in some countries. Thai SEC and the Cayman Islands Monetary Authority (CIMA) are the latest to join regulators in scrutinizing the exchange.
On Friday, Thailand’s Securities and Exchange Commission (SEC) announced that it had filed a criminal complaint against Binance for allegedly operating a digital asset business without a license. The SEC is launching a criminal procedure and an investigation against the exchange for providing crypto trading services by “matching orders or arranging for the counterparties or providing the system or facilitating entry into an agreement,” noting that “in so doing, Binance has solicited the Thai public and investors to use its services, either via its website or Facebook (NASDAQ:) Page: Binance Thai Community.”
The SEC said that it had previously issued a letter of warning to Binance in April requesting a written response, but the exchange failed to respond within the stipulated time. The agency wrote:
Only providers who have obtained relevant licenses under the law are allowed to provide services related to digital asset trading, exchange, depository, transfer, withdrawal or any transactions related to digital assets. Violators may be liable to penalties under the law.
The Thai SEC’s announcement comes a day after Cayman regulators announced that Binance, the Binance Group, and Binance Holdings are “not registered, licensed, regulated or otherwise authorized” to operate a crypto exchange “from or within the Cayman Islands.” The regulatory clarified that none of the listed entities were complying with any of its regulatory oversight.
Furthermore, the CIMA noted that it will be investigating other companies linked to Binance that operate in or from the Cayman Islands. According to the Cayman Islands Companies Act, 2020, crypto companies operating in the region must either be registered under the country’s virtual asset service providers act or any other existing regulatory body that has been granted a waiver under the act.
Binance has been having a hard time with regulators around the world, with governments like Germany, Japan, the United Kingdom, Canada, and the United States scrutinizing its operations lately. A Bloomberg report published on Thursday revealed that the Singapore Monetary Authority is already mulling over reviewing Binance Asia Services’ license application.
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