Although the presale took place in 2017, the SEC would be investigating whether Binance incurred some type of securities law violation for trading the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. BNB through a ICO. This would put the exchange in a situation similar to the one it is currently in. Ripple.
***
- SEC researches to Binance for token pre-sale the sale of a cryptocurrency, ahead of it going public, to specific investors. BNB.
- El token BNB was marketed in 2017 through a ICO.
- La SEC court fight against Ripple for similar reasons.
- El ISR y la CFTC are also investigating Binance in the USA.
A report recently published by the news agency Bloomberg suggests that the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) has an ongoing investigation against Binance, to determine whether it violated securities laws after the sale of its token. Binance Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. (BNB) five years ago.
SEC is conducting an investigation against Binance
According to Bloomberg, the information in question was provided by sources with knowledge of the case, which indicate that the SEC would be researching the origins of Binance and the launch of the token BNB, so they would be examining whether the pre-sale of the same corresponded to the sale of a security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. that should have been duly registered with the regulatory agency.
According to the report, this would be a new incursion on the part of the SEC against companies within the crypto space that funded themselves through pre-sale campaigns for new cryptocurrencies. Let’s keep in mind that the regulator is currently holding a dispute in court with solutions developer Blockchain, Ripple, which he sued for allegedly selling securities in 2013 when they traded the token. XRP.
According to the founding document (White Paper) de Binance introduced in 2017, the pre-sale of the token BNB The plan was to market an area or arena, online or offline, in which commercial dealings are conducted. at least 100 million units through a campaign that would ICO, which was conducted through multiple platforms around the world. Those who purchased the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. at that stage could access it at a low cost compared to when it was officially launched, and the company clarified that 85% of those funds raised would be used to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. the operations and international rollout of the service.
It appears that, in addition to the above-mentioned, the SEC is concerned about the fact that U.S. residents participated in these pre-sale campaigns, which would indicate that there was no restriction or control on who could purchase these tokens, as indicated by the securities laws in effect at the time. It also points out that Binance offer to pay your employees and service providers with the token. BNB, which would have other implications for such a digital asset.
Case similar to that ofRipple?
While sources make it clear that a compliance investigation by the SEC does not necessarily lead to a lawsuit by the regulator, for many the move is somewhat akin to the actions and complaints brought by the regulator againstRipple.
Currently, the CEO ofRipple, Brad Garlinghouse, and other members of his team are appearing in court in a dispute against the SEC which still seems to be far from over. However, the trial has taken some turns and everything seems to tilt the balance in favor of the solutions developer. Blockchain, which maintains that the token XRP is not a security and that in marketing it they did not violate any law currently in force.
As detailed by the Bloomberg, the investigation may be considering other important aspects. It details that it is also considering whether Binance.US realmente funciona como una entidad separada de Binance, as well as other possible allegations of insider trading to engage in investment activities that led to very lucrative results for certain individuals.
Let us keep in mind that Binance currently has no physical headquarters in any country, although this has not been an impediment for it to opt for and access the respective licenses to offer its services in a large number of legislations. It should also be considered that this has not represented any inconvenience for the exchange to continue its expansion process, which has further consolidated its position at regional levels.
Investigation is ongoing
Faced with this report, the team of Binance said it cannot comment on ongoing discussions with regulators at this time, but said it is in constant contact with the authorities and will comply with the rulings made by the regulatory authorities.
For its part, the team of the SEC refrained from commenting on the issue.
Currently the Internal Revenue Service (IRS) y la Commodity Futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Trading Commission (CFTC) ) are also pursuing investigations against Binance, This on the premise that the exchange allowed U.S. residents to trade cryptocurrencies through its platform.
- Binance Labs invests in DEX (decentralized exchange)A peer-to-peer exchange allowing users to trade cryptocurrency without the need for an intermediary. PancakeSwap and its utility token CAKE
- Binance CEO: I’m “skeptical” of Terra 2.0 and we’re investigating allegations against Do Kwon
- Binance now licensed to operate in Italy, announces CEO
Source: Bloomberg ,TheBlogCrypto
Version by Angel Di Matteo / DiarioBitcoin
Imagen de Unsplash, edited with Canva
