The US Securities and Exchange Commission (SEC) is currently investigating Binance.US, the US branch of the global cryptocurrency exchange, over concerns about its undisclosed asset control methods. The investigation comes as the industry is on high alert following the collapse of competitor FTX, as regulators and investors are wary of any signs of wrongdoing similar.
The SEC investigation, which has been underway since June, initially targeted Binance for allegedly operating an illegal securities exchange. The recent troubles for Binance.US were compounded by an admission from CEO Changpeng Zhao, who acknowledged shortcomings in the exchange’s anti-money laundering (AML) measures and compliance punishment law. Despite these admissions, the Department of Justice has not charged Binance.US or its executives with misappropriation of customer funds.
The SEC’s growing scrutiny of Binance.US signals a broader push by regulators to ensure crypto platforms operate within legal and regulatory frameworks, especially with regard to regarding the protection of customer assets. The results of the SEC investigation into Binance.US could have important implications for the cryptocurrency industry, especially regarding how exchanges manage and control customer assets.
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