US SEC Is Reportedly Close To Taking Enforcement Action Against Binance
After a series of attacks against crypto exchanges Coinbase, Bittrex, Kraken, and other entities related to crypto, the securities regulator has set eyes to bring action against Binance or Binance.US.
Binance In the US SEC Crosshairs
Crypto exchange Binance has been under heightened scrutiny since the collapse of FTX. In March, the U.S. CFTC filed an enforcement action against Binance and CEO Changpeng “CZ” Zhao in March for violating commodities laws and operating an illegal derivatives exchange. The DOJ is also probing Binance for several matters, including violating sanctions against Russia.
Andrew in a tweet on May 8 said the SEC is almost close to taking action against Binance.US or Binance. The SEC may also bring changes against Binance CEO “CZ” for violating securities laws and failing to comply with the anti-money laundering (AML) rule.
He warned that the US Dept. of Justice (DOJ) could also be part of investigations against Binance after the SEC brings an enforcement action.
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24/7 Cryptocurrency NewsUPDATE: Two sources have made it clear that the SEC is **very** close to moving on actions against Binance/Binance US, as well as CZ personally.
**source: “…he has to hope that it is JUST the SEC, and not the DOJ as well, unregistered securities versus money laundering.”
— Andrew (@AP_Abacus) May 8, 2023
Recently, the SEC sent a Wells notice to Coinbase warning an enforcement action against the exchange for listing securities and staking services. Coinbase said the SEC action will have no impact as the exchange doesn’t list securities and blasted SEC for lack of clarity over digital asset regulations.
Coinbase followed a complaint seeking a response from the US SEC on questions sent last year regarding how government agencies use securities law for regulating digital assets. It also failed to provide clear guidelines and rules on crypto trading, listing, and staking.
A court has now ordered the SEC to respond to Coinbase’s writ of mandamus within 10 days. Coinbase may file a reply to the commission’s response within 7 days of the filing.
Also Read: Coinbase Legal Chief Takes Pre-Emptive Strike Against US SEC
Binance Pausing Bitcoin Withdrawals
Coingape reported that Binance decided to pause BTC withdrawals citing congestion on the Bitcoin blockchain. The spike in pending transactions and fees caused exchanges to delay or pause withdrawals.
Binance moved BTC worth nearly $5 billion to manage the current situation. The exchange revealed the outflows are actually movements between Binance hot and cold wallets due to the BTC address adjustments. The SEC could also take the point in its action against Binance.
Also Read: Coinbase CEO Brian Armstrong Heads To UAE For Strategic Developments