Binance is increasingly in the spotlight of players in the crypto industry. The reason is, more and more countries are “siege” on this large exchange, questioning regulations and permits.
Which countries are moving as if simultaneously encircling Binance, and what is the main reason for them to do so?
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Binance versus Negara
Indonesia
In Indonesia alone, Binance does not have an official corporate entity that is registered and supervised by CoFTRA.
Since 2020, the Binance.com site cannot be accessed “normally” in Indonesia, including recently the Binance.cc domain.
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English
The hot news lately stems from FCA England, on 26 June. FCA, a financial authority similar to the OJK in Indonesia, prohibits Binance (Binance Markets Limited) from offering its products to citizens.
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The reason is that Binance does not have a license to carry out crypto trading activities, especially crypto futures contracts, according to the country’s regulations.
Binance Markets Limited, a UK subsidiary of Binance, is registered in the kingdom. The information can be read here.
While the list of crypto asset companies that have been registered and allowed to offer their products is in this link.
Regarding this issue, Binance via Twitter confirmed that it is currently still in the process of discussing it with the FCA.
British citizens will be able to access their products via the Binance.uk website, not Binance.com.
Japan
The day before the UK, on June 25, 2021, Japan had indeed reprimanded Binance first. The Japanese financial authorities sent a warning to Binance, for it has been operating without being registered. So, the issue is similar.
Canada
On the same date as the UK, Binance announced the termination of their services in Ontario, Canada, and asked its users to close active positions until December 31, 2021.
This decision was taken following the Ontario Securities Commission’s crackdown on other exchanges, such as KuCoin, Poloniex and Bybit. All these exchanges operate without a license.
Thailand
On July 2, 2021, the Securities and Exchange Commission (SEC) of Thailand filed a criminal complaint against Binance, for running a digital asset business without a local permit.
“On April 5, 2021, we issued a warning letter requiring Binance to submit a written response. But Binance has not responded by a specified date,” the Thai SEC said Forkast News, Friday (2/7/2021).
Cayman Islands Financial Authority
On the same date as Thailand, the Cayman Islands Financial Authority (part of the UK) has issued a statement that Binance, Binance Group and Binance Holdings Ltd. not registered, licensed, regulated or authorized by any authority to operate a cryptocurrency exchange business from or in the islands.
This statement was issued in response to media reports saying that Binance Holdings Ltd. registered in the Caymans.
However, this is still in the light category, because unlike other countries, Cayman Island did not carry out any “attacks” on Binance.
In response to this statement, a Binance representative said that they operate on a “decentralized” basis.
In addition, Binance also claims to have a corporate entity incorporated under the law in the Cayman Islands that conducts activities permitted by law and is not related to the operation of crypto exchange trading activities.
Although the Cayman Islands Financial Authority said that the company “Binance Holdings Ltd” did not have a license in the islands, on its website “Binance Holdings Limited” was recorded on their system.
Singapore
Earlier this July, the Monetary Authority of Singapore (MAS) issued a statement following the ban in several of the above countries, saying that authority will take “appropriate steps” to follow up on submissions from Binance.
For your information, Binance currently operates in Singapore as Binance Asia Services (BAS) under an exemption from holding a license as part of a transitional arrangement under the Payment Services Act for the provision of digital payment services.
“Exceptions allow entities to provide services while their license application is being processed. The BAS license application is being reviewed by the central bank on a regular basis de facto, ”Kata MAS.
South Korea
On July 1, South Korean lawmaker Noh Woong-rae called for Binance to be regulated in the country like a local exchange.
“Binance pays no taxes and doesn’t comply with Korean regulations for basic investor protection though [Binance] doing business for Koreans. This is clearly reverse discrimination against the Korean exchange,” Noh said, quoted by a local news portal, News1, Thursday (1/7/2021).
United States of America
In Uncle Sam’s country, Binance is facing investigations for alleged money laundering and tax violations.
https://blockchainmedia.id/binance-digugat-fisco-di-as-gegara-duit-rp139-miliar/
This was the only country that had a different “attack” on the exchange, which still seemed to be able to settle quietly.
Is Changpeng Zhao ready?
Binance is likely to do well in the face of any demands made by these countries, as since earlier this year, Binance has recruited former Executive Secretary of the Financial Action Task Force Rick McDonell and Josée Nadeau, former Head of Canadian Delegation to the FATF.
There is also former US Senator Max Baucus, to provide guidance on global compliance and the company’s regulatory strategy.
From here, it might just be a matter of time for Changpeng Zhao to withstand every “siege” and answer the challenge of getting back on your feet as before. [st]
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