Thai SEC and Cayman Islands regulator take action on Binance

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Binance, the leading cryptocurrency exchange by trade volume, continues to be subject to scrutiny by regulators regarding the legality of its operations in certain countries.

The Securities and Exchange Commission of Thailand (SEC) and the Cayman Islands Monetary Authority (CIMA) are the latest financial regulators to announce a regulatory crackdown on Binance.

Thai Sec announce On Friday, the agency filed a criminal complaint against Binance, launching a criminal proceeding and investigation into allegations that it operated a digital asset business without a license. The authority said Binance provided cryptocurrency trading services via its website by “matching orders, arranging counterparties, providing the system or facilitating entering into an agreement.”

“By doing so, Binance has encouraged the Thai public and investors to use its services, either through its website or Facebook page: Binance Thai Community,” the SEC notes. The regulator stated that it previously issued a warning letter to Binance in April, asking the exchange to provide a written response, but the crypto exchange failed to provide a response within the stipulated time.

“Only service providers who have obtained relevant licenses by law are allowed to provide services related to digital asset trading, exchange, deposit, transfer, withdrawal or any transactions related to digital assets. The agency noted that violators may be subject to penalties under the law.”

The Thai SEC announcement comes just a day after CIMA in Cayman officially announce Thursday that entities such as Binance, Binance Group and Binance Holdings are “not registered, authorized, regulated or otherwise authorized” to operate a crypto exchange “from or within the Cayman Islands.” The supervisory authority confirmed that none of the listed entities is subject to any of its regulatory oversight.

CIMA indicated that the regulator will also investigate any other Binance affiliate that has any activities operating in or from the Cayman Islands.

The authority added that any crypto-related company that is incorporated under the Cayman Islands Companies Act 2020 or otherwise established in the Cayman Islands must either be registered by the country’s Virtual Asset Service Providers Act or any regulated entity granted the authority a waiver by act.

A Binance spokesperson told Cointelegraph that the cryptocurrency exchange “always operates in a decentralized manner.” The representative denied reports regarding Binance’s crypto operations in the Cayman Islands, adding:

“However, we have entities incorporated under the laws of the Cayman Islands that perform activities permitted by law and are not related to the operation of cryptocurrency exchange trading activities.”

Related: Binance deals with compliance with travel rules after several bans

As a major global exchange, Binance is struggling to find the right jurisdiction to operate its cryptocurrency business. Founded in China before the state Ban on cryptocurrency trading In 2017, Binance moved abroad and was It is said that the headquarters In the Cayman Islands and Seychelles as of February 2020.

Binance is known for having multiple entities around the world and is said to have been previously headquartered in Malta. Last February, the Malta Financial Services Authority claimed that it You did not agree to Binance to work in the country.

The latest news comes amid a Renewed campaign on Binance activity around the world, with governments like United kingdomAnd the JapanCanada and the United States have been closely following the stock market operations lately. According to a report Thursday by Bloomberg, the Monetary Authority of Singapore plans To review the Binance Asia Services license application amid the exposure of its parent company to regulatory scrutiny around the world.