After the world’s largest crypto trading platform, Binance got banned in England, and it remains under scrutiny in many countries over its several operations. In the latest development, the financial regulators in the Cayman Islands and Thailand have announced their crackdown on the exchange.
In a surprising statement on Friday, the Thai SEC said it had filed a lawsuit against the platform for operating a trading business without a license. In addition, it raised numerous questions on its services, saying.
In so doing, Binance has solicited the Thai public and investors to use its services, either via its website or Facebook Page: Binance Thai Community,” the SEC noted. The regulator mentioned that it previously issued a warning letter to Binance in April, requiring the exchange to submit a written response. Still, the crypto exchange failed to submit a response within the specified time.
It further added that the platforms that have got a license from the government could offer to trade and deposit services related to digital assets. However, Thailand’s SEC also warned that the violators might also face legal proceedings.
Cayman Island’s Clampdown On Binance
The announcement from the Thai officials came a day after CIMA, Cayman Island’s financial regulator, revealed that all Binance entities are trading without any legal licenses. Besides that, it further revealed its plans to launch an investigation into another trading platform providing its services across the island.
In response to the allegations, the CEO of Binance categorically denied all the allegations regarding its services and operations. He said,
We do, however, have entities incorporated under the laws of the Cayman Islands performing activities that are permitted by law and not related to operating crypto-exchange trading activities.
The Growing Challenges For Binance
In terms of volume, the world’s largest trading platform has been struggling to find the right jurisdiction to operate its crypto services business. Originally founded in China, the firm moved overseas following a crackdown by Beijing.
Reportedly, it was headquartered in Seychelles and Cayman Islands as of February 2020. Plus, it has numerous entities across the world and has also been based in Malta. But upon clarification, the country’s financial regulator said that it had no official approval to operate from the country.
On the other hand, many other countries, including the US, Canada, France, and Japan, are now closely following Binance’s operations amidst a crackdown on the platform. In addition, on Thursday, Singapore’s regulator announced its plans to review Binance’s Asia license.