Authorities in the United States have reportedly expanded their investigation into Binance cryptocurrency exchange to include possible insider trading and market manipulation.
In a report by Bloomberg, sources said the authorities have been looking into whether Binance or its staff have exploited their users and the firm’s access to millions of transactions. This includes whether the exchange’s executives traded on customers’ orders before executing them.
In a statement to Bloomberg, the company stated they have a “zero-tolerance” policy for insider trading and a “strict ethical code” to stop any misconduct.
This is not the first time the media company has reported about Binance investigations. In March, Bloomberg reported that the Commodity Futures Trading Commission (CFTC) was investigating the exchange for allegedly allowing U.S. residents to trade products in violation of local rules. Binance is licensed in the Cayman Islands and not legally allowed to offer digital currency derivates to residents in the United States. A report on money laundering and tax offenses followed a few months after. Bloomberg noted, however, that Binance has not officially been accused of wrongdoing and the investigation may not lead to charges.
Binance is not the only exchange facing regulatory pressure in the United States. Coinbase announced it will no longer release its USDC Lend product that was initially planned to be released in October. A few weeks ago, the company confirmed they received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) upon learning about the plan to launch Lend.
Still in the U.S., regulators in Alabama, New Jersey and Texas are accusing crypto lending platform Celsius Network of offering unregistered securities. Recently, the Alabama Securities Commission and New Jersey’s Bureau of Securities issued an order stopping Celsius from offering its interest-bearing cryptocurrency deposit accounts in the states by October. On the same day, Texas State Securities Board also released an order requiring the company to appear at a hearing on February 14, 2022, where a possible cease and desist order will be determined.
These orders came after the state regulators’ heightened scrutiny of crypto lending platforms. In July, Celsius’s competitor Blockfi received cease and desist orders from state regulators over selling unregistered securities, which is allegedly in violation of securities laws.
A spokesperson from one of the largest crypto lending companies said there are no changes in their services to any of their clients for now.
In other news, futures funds manager Aequantium LLC selected financial tech company Tokenized to create and issue tokens for investors, and to provide smart contract management and services. The Australia-based company will also be responsible for internal control accounting solutions to Aequantium, with records timestamped and stored directly on the BSV blockchain. In addition, Aequantium will leverage the Tokenized system for the on-chain verification of token transactions, and to provide access to fund data for both participants and regulators.
This week, check out the video highlights of the recent launch of the Satoshi Block Dojo in London.
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