In a significant development that could send shockwaves through the cryptocurrency industry, Binance
The SEC’s filing asserts that Binance has been offering crypto assets for trading that are presented and sold as investment contracts, thereby classifying them as securities. This list includes BNB, BUSD, and other crypto assets identified by trading symbols SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI, collectively referred to as the “Crypto Asset Securities.”
The U.S. Securities and Exchange Commission (SEC) has filed a document detailing its concerns about Binance. Here’s the detail why the operations of Binance are considered as securities:
The SEC’s filing concludes by stating that to win on the Exchange Act claims presented herein, the SEC only needs to prove that the Binance Platforms engaged in activities related to a single crypto asset security.
The U.S. Securities and Exchange Commission (SEC) has alleged that Binance and BAM Trading have been operating without the necessary registrations. According to the SEC, both entities have been using interstate commerce to facilitate transactions involving crypto assets, which the SEC considers securities.
The SEC claims that Binance and BAM Trading have been acting as a meeting point for multiple buyers and sellers of these crypto assets. As such, they were required to register with the SEC as a national securities exchange or operate under an exemption, which they failed to do.
Furthermore, the SEC alleges that Binance and BAM Trading have been acting as brokers, facilitating trading in crypto asset securities by opening customer accounts, handling customer funds, and being compensated for these services. This activity also required registration with the SEC, which was not done.
The SEC also accuses Binance of acting as a dealer, regularly buying and selling crypto asset securities for its own accounts while providing Binance OTC services. This activity required Binance to register as a dealer or operate under an exemption, which it did not do.
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