Crypto giant Binance has recently faced charges from US financial regulators for allegedly violating the country’s investment laws. The Securities and Exchange Commission (SEC) has accused the company of engaging in what it calls a “web of deception.” According to the SEC, Binance erected “sham controls” to maintain its operations within the US despite regulatory restrictions.
This development takes place as the United States has made a commitment to more assertively oversee the cryptocurrency industry by leveraging its existing legal framework. The SEC’s accusations against Binance underscore the increasing scrutiny and regulatory pressure faced by cryptocurrency platforms.
In response to the charges, Changpeng Zhao, the founder of Binance, stated that his company was unaware of the allegations made by the SEC. Zhao, who leads the trading platform used for buying and selling cryptocurrencies like Bitcoin, emphasized that Binance would provide a response once they had an opportunity to review the complaint. He also took to social media to assure users that his team was prepared to ensure the stability of the platform’s systems.
Notably, the SEC’s lawsuit is not the first regulatory action taken against Binance. Earlier this year, the Commodity Futures Trading Commission (CFTC), another financial regulator, also filed charges against the company. These consecutive regulatory actions further exemplify the growing focus on enforcing compliance and regulation within the crypto industry.
