The last countries to ban Binance from operating were the Cayman Islands and Thailand. Various countries are trying to restrict the unauthorized financial activities of the exchange on their territory.
In recent days, the Cayman Islands and Thailand restricted operations of cryptocurrency exchange Binance on their territory. In the case of the Asian country, a public agency even filed a lawsuit against the firm. Therefore, both countries joined the United Kingdom, Singapore, Japan and Malaysia, which had already taken similar measures.
The Securities and Exchange Commission (SEC) of Thailand filed a criminal complaint with the Economic Crimes Eradication Division of the Royal Thai Police. In April, the entity said that the firm had received a warning, to which it never responded.
Meanwhile, the Cayman Islands Monetary Authority (CIMA) reported on the irregular status of Binance Group and Binance Holdings Limited. The agency noted that they are not registered, licensed, regulated or authorized to operate as a cryptocurrency exchange on its territory. The entity also said that it is investigating whether the firm conducts other activities within its regulatory framework.
Representatives of the company say that they are not operating a cryptocurrency exchange from the Cayman Islands. However, they claim that they own other companies doing other activities allowed in the island’s laws.
Binance Faces Regulatory Challenges in Other Countries
Singapore is another nation, aside from the Cayman Islands and Thailand, where Binance has faced regulatory challenges. Singaporean authorities recently reported that they would evaluate the permits of the firm to operate in the country.
The UK Financial Conduct Authority (FCA) also banned Binance Markets Limited (BLM) from trading crypto derivatives. The exchange is not authorized to conduct such activity on that territory but said it would commit to comply with all the regulations.
Earlier, Japan’s Financial Services Agency warned that Binance is not registered to operate in the country. Besides, the Malaysian government issued a notification about unauthorized activities that the exchange does in its territory.
Binance’s Response to Its Regulatory Problems
Binance Group has promised to comply with the laws of each of the countries where it operates. The firm announced that it would share information about cross-platform transactions with other exchanges.
Companies in this sector could provide information about transactions to public agencies for investigative purposes against illegal activities. This measure encompasses the Travel Rule that the Financial Action Task Force (FATF) recommends.
There is also a history of successful operations that supports Binance’s commitment to collaborate with the State. For example, in late June, the exchange provided information that made it possible to stop hackers from laundering money on its platform.
According to Binance’s official site, the firm reserves the right to choose the markets and jurisdictions to conduct its activities. They may also restrict or prohibit, at their discretion, the provision of their services in certain countries and regions.
Due to its regulatory problems, regulators in the abovementioned have other Binance in their sights. If the firm does not comply with the regulations, the authorities will force it to close its operations.
By Alexander Salazar
