The SEC does not cause jealousy! – A year and a half ago, the Securities and Exchange Commission (SEC) decided to open a legal investigation against Ripple Labs. The US regulator suspected the crypto company of conducting an illegal issuance of securities with its XRP token. While this business is running out of steamthe SEC seems to have set its sights on a new target: Binance and its token, the BNB.
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SEC opens investigation into Binance Coin
On June 6, 2022, the Bloomberg media announced that the SEC was opening an investigation against the exchange. Binance. The goal? Knowing whether the BNB token should be considered a financial security at the time of its sale in 2017.
Thus, the SEC is interested in the origins of the crypto business and that of the Binance Coin (BNB). Currently, this token is the fifth most important cryptocurrency. According to people who spoke about the matter on condition of anonymity, SEC investigators are looking into BNB ICO in 2017. Indeed, it would be equivalent to a sale of securities that should have been recorded with the SEC. As a reminder, a ICOs is a cryptocurrency fundraiser.
In sum, the SEC is looking to determine whether Binance has not breaks the rules in 2017. In a press release, Binance said:
“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.”
The SEC, meanwhile, declined to comment on the matter. And for good reason, the case is still confidential!
This year Binance is undoubtedly in the crosshairs of US regulators. Last February, the American financial policeman had already opened an investigation into Binance US. He then wanted to ensure that the exchange was indeed a separate entity from its global counterpart.
Binance has now reached a sufficient critical size to be able to return blow after blow in this kind of skirmish. To register on the exchange and form your own opinion, vs’is over here.