Binance into Deep Waters & More Troubles Coming In

Binance is currently into deep waters as a lot of states regulators are going after Binance. The worst-case scenario is the filing of a criminal complaint lodged against Binance by the Securities & Exchange Commission of Thailand (SEC).

Crypto regulation is not the one big problem currently for the global crypto industry. In fact, several states have been trying to fight off crypto criminal elements. However, there are some other problems as well. For instance, Binance, the world’s leading and the largest crypto trading platform is these days became a problem for many regulators.

The problem with Binance is that it has been failing continuously for complying with certain regulatory requirements in different regimes. It is said that Binance is deliberately not complying with the requirements. However, this has led the crypto trading platform into deep waters and as a result, its global crypto trade business is being damaged continuously.

Due to failure of non-compliance, firstly the regulators in UK, Cayman Island, and then Japan had suspended Binance’s crypto trading services. Notices of cease and desists were accordingly sent because Binance did not comply with the certain requirements set up by the respective regulators. However, in all these jurisdictions, the matter remained only to the extent of giving warnings and temporarily suspending trading.

Now a case has recently been instituted against Binance and its executives in Thailand. The case is alleged to be of a criminal nature and has been initiated by Thailand’s SEC, which is the regulator of the digital asset industry. It was told by SEC that the complaint has been lodged before the law enforcement agency known as Economic Crime Suppression Division (ECD). This ECD is an economic investigation and prevention of crime wing belonging to the Royal Thai Police.

In the complaint, SEC has claimed that Binance is actively involved in encouraging the Thai public to trade crypto products through its trade platform. Thai customers have been acquiring trade services of Binance through Facebook and through the official website of Binance. It has been further claimed that the authority had issued a show-cause notice to Binance in April 2021. However, the company opted not to submit a reply in a limited timeframe.

SEC said that they will not in any manner allow a foreign crypto exchange to render trade services without obtaining a license. Since the exchange has not submitted any response then the lack of response entails legal action. Under Digital Asset Businesses Emergency Decree, particularly Section 66, no crypto exchange is allowed to do business in Thailand without prior approval. Any such activity in violation of Section 66 would lead to consequences including the filing of criminal proceedings. Further, the violators will be liable to pay fines and may face imprisonment for a minimum of 2 years and 5 years maximum.