The United States Securities and Exchange Commission (SEC) wants an “alternate route” to send the corresponding documents to Binance.
The matter of regulators against Binance in the United States is just beginning. Now, the SEC wants a solution, albeit an alternative one, to deliver documents to the exchange’s CEO, Changpeng Zhao. For this, the agency would have requested authorization from the court that handles the lawsuit case.
This initiative of the commission occurs given the difficulties in knowing the businessman’s whereabouts. According to the agency itself, the head of the most important exchange on the planet is “famously protective when it comes to revealing his whereabouts.”
Thus, the agency wants to carry out the legal process it has against the crypto trading firm. On Monday, regulators sued CZ and Binance with a total of 13 charges.
SEC Wants to Speed Up Case Against Binance
It seems obvious that the SEC wants to get out of this Binance issue fast. However, this will be a slow and difficult process for the plaintiffs. In any case, the first obstacle for the agency is that the company does not have a fixed headquarters.
In the same vein, the commission claims that the company’s CEO is not easy to find. Consequently, the solution to this would be to send copies of the documents to the company’s lawyers directly.
According to the businessman himself, its current location is in Dubai. However, his company is famous for not having a headquarters, while his employees are scattered worldwide. The way to manage this million-dollar business is one of the most complicated for regulators.
“Binance and Zhao are not your typical foreign entity and individual, as they are widely known for disagreeing with the premise of a headquarters or domicile, let alone identifying one, and Zhao is famously known for guarding against revealing his whereabouts,” expresses the Commission in the aforementioned request of this Thursday.
Considering the above, it is clear that the SEC wants authorization to take alternative paths. For the commission led by Gary Gensler, the priority is for the documents to have a legal recipient; in this regard, the firm’s lawyers are ideal.
The War on Cryptocurrencies
This week was one of the most difficult for centralized cryptocurrency trading companies. The US regulatory commission directly targeted the two major exchanges, Binance and Coinbase.
Although the companies have great influence and broad support, the magnitude of the charges leaves no doubt as to what the SEC wants. Other companies with similar platforms are feeling the pressure that the agency will be after them soon. The atmosphere seems heated in the United States, and businessmen complain about the lack of regulatory clarity.
One of the affected exchanges, Coinbase, recently stated that it is convinced that a lawsuit is in the best interest. That would allow the company to have a clear picture of the regulations for operating in the US market.
Meanwhile, CZ’s company, Binance, calls on its users not to panic and avoid FUD (fear, uncertainty, and doubt). According to Binance, the SEC wants to harm America’s innovation and leadership role in the tech world.
By Audy Castaneda
