Cryptocurrency
Binance.US Faces Investigation From SEC Over Trading Affiliates: Report
The U.S. Securities and Exchange Commission (SEC) has reportedly opened a probe into Binance.US, the American branch of the world’s biggest crypto exchange Binance, and its trading affiliates.
Probe Into Binance.US Ongoing
Citing people familiar with the matter, The Wall Street Journal reported on Tuesday that the SEC is investigating the relationship between Binance.US and trading firms Sigma Chain AG and Merit Peak Ltd.
Former executives, as well as corporate documents from 2019, confirm that the founder and CEO of Binance, Changpeng Zhao, helmed both firms as of late 2021. Sigma Chain AG and Merit Peak Ltd are believed to act as market makers on Binance.US, meaning they use their assets to facilitate trades.
The securities watchdog wants to know whether the exchange disclosed these relationships to its clients. Though Binance.US argues that market makers can trade crypto assets on its exchange, it doesn’t specifically name the two trading firms in question.
A probe doesn’t necessarily mean the exchange is being accused of any wrongdoing. Representatives of Binance told the Journal that the exchange is not required to reveal its organization setup to members of the public, but it’s open to providing this information to regulators when prompted.
Binance’s Regulatory Difficulties
Binance has been inadvertently caught in the crosshairs of regulators for years.
In September last year, Binance was investigated by the Commodity Futures Trading Commission (CFTC) for allegations of insider trading and market manipulation. Prior to that, the exchange had been probed by the Justice Department and Internal Revenue Service for information related to money laundering and tax evasion.
Binance launched its U.S. entity in 2019 after regulatory barriers prevented American customers from using its global platform. Binance.US was subpoenaed by the SEC in 2020 for information on whether the US-based arm operated independently from the main exchange.
Cryptocurrency
Cardano’s Charles Hoskinson wants to work with Elon Musk to develop a decentralized social media platform
The Founder of Cardano (ADA) has invited Tesla owner and billionaire, Elon Musk, to work with him in developing the first decentralized social media platform. Charles Hoskinson, who also doubles up as the CEO of Input-Output Global is offering to help Elon Musk achieve his goal of free speech on social media.
The news follows Elon Musk’s acquisition of a stake in Twitter last week. The Billionaire bought 9.2% of Twitter, estimated at $2.89 Billion, and was even offered a seat on the micro-blogging site’s board. However, after deliberations, Elon passed on the offer since it would bar him from owning beyond a certain threshold of Twitter’s shares.
Free speech advocate
Elon Musk is on record for being a passionate supporter of free speech and open internet policies. He has in the past openly accused Twitter of muzzling free speech and open internet use. He recently held a poll that indicated that most users would prefer an edit button on Twitter and said that if he is not allowed to acquire the platform, he would have to reconsider his position as a major shareholder of Twitter.
To actualize this cause, he has offered to acquire the platform for a reported fee of $43 Billion in cash. This intended acquisition has left his critics and supporters talking and would go a long way in helping him bring much-needed changes to Twitter. His intention has however come under fire with his critics, including Dogecoin co-founder, Jackson Palmer saying that Elon Musk is planning a hostile takeover of Twitter.
Hoskinson’s offer to Elon Musk
Upon seeing the opposition against Elon Musk’s plan, Hoskinson wooed Elon to join him in creating a decentralized social media platform. He tweeted:
“@Elon if Twitter rejects your offer, then hit me up. Happy to build a decentralized one.”
This offer follows Elon Musk’s Twitter poll where he sought the opinion of his 80 million followers about a decentralized social media platform. He posited that were he to be barred from acquiring Twitter, he would establish his decentralized platform that would be founded on free speech and open internet.
Elon Musk’s campaign for free speech and open internet has not been welcomed by all. Some of his critics have argued that coating his move with good intentions, his true intention is to get revenge against the SEC for muzzling his Twitter activities.
Cryptocurrency
Thailand Outlaws The Use Of Crypto For Payments
- The SEC in Thailand has banned crypto payments in the country.
- Its new decision is expected to become enforceable in April.
- The SEC reiterated that the government still maintained support for the blockchain industry, clarifying that the decision does not affect crypto investments.
The Securities Exchange Commission today has placed restrictions on crypto as a means of payment. They believe that it poses risks to the nation’s financial stability.
Crypto Payments Outlawed
Thailand’s SEC today has outlawed the use of crypto as a medium of exchange in the country. The regulators came up with this decision after discussing the benefits and inherent risks from crypto and blockchain technology with the country’s central bank, the Bank of Thailand (BOT).
They concluded that the use of cryptocurrencies for payment was potentially harmful to the country’s financial stability and economy. Price volatility, risks of theft, and potential use cases in money laundering were amongst the reasons cited by the SEC that led them to this decision.
The SEC report read, “the use of digital assets as a medium for payment of goods and services Because it may affect the stability of the financial system and the overall economy. including risks to people and businesses such as the risk of loss of value caused by price volatility Risk of Cyber Theft Risk of personal data leakage or being used as a tool of money laundering.”
As per the SEC’s new decision, crypto service providers and vendors or merchants in the country are encouraged to stop providing or facilitating such services. Suppose a crypto service provider discovers that a customer has used its services to make payments. In that case, the service providers are to inform the SEC and restrict activities on the said account.
The SEC’s new ruling is to take effect from the 1st of April. However, businesses that already offer such services would be given till the end of April to cease such operations. The crypto market in Thailand has grown massively over the last couple of years. As per a Bloomberg report, government data estimates that Thai citizens hold about $3.4 billion in crypto assets.
Crypto Investments Not Affected As The Thai Government Still Supports Blockchain Technology Innovation
The SEC in their release, clarified that the restriction was only on using cryptocurrency as a means of payment and in no way affected citizens investing in crypto. It was stated that “digital asset traders/investors can carry out normal investment/trading related transactions.”
The SEC also maintained that the government still supported blockchain technology and was working to provide a regulatory environment where innovation can be encouraged in the industry. Recall that earlier this month, the country had offered tax incentives to investors and businesses in the crypto industry.
“… the BOT and the SEC, as well as other government agencies, see the benefits of various technologies behind digital assets such as blockchain and emphasize and support the use of technology to further innovation.”
-
Cryptocurrency5 years ago
Ripple Sends $26 Million Worth of XRP to Jed McCaleb, XRP Army Fears Another Dump in Price
-
Cryptocurrency5 years ago
China Is Set To Launch A Legal Cryptocurrency In The Second Half Of 2019
-
Cryptocurrency5 years ago
HODLers Plead With Ripple Inc. Not To Dump XRP Tokens Anymore
-
Blockchain5 years ago
The Future Of Publishing With Blockchain, Steemit vs. Publish0x
-
Cryptocurrency5 years ago
Intel’s 10th Generation Processors: A Hard Pick From a Buyer’s Point of View
-
Cryptocurrency6 years ago
How to Exchange and Withdraw Digibyte to Bitcoin/Ethereum on any exchange platform
-
Cryptocurrency6 years ago
Why Bitcoin Is Better Than Other Cryptocurrencies
-
Cryptocurrency5 years ago
40% Of Bitcoins Are Stored On Wallets With A Balance Of Over 1000 BTC