Binance’s troubles continue: China, Thailand and the Cayman Islands block the world’s largest cryptocurrency exchange
Chinese Binance users noticed the glitch on Thursday, and were forced to use a VPN to access the platform. For their part, Binance’s competitors, such as Huobi and OKEx, were still available in the country, but they are now likely to be unavailable from mainland China as well.
Binance already has enough problems that have arisen in the UK and Japan, where the exchange refused to try to get approval from the financial regulator that controls compliance with anti-money laundering and terrorist financing laws, and there is also a problem with access to Chinese users.
In May, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions, while warning investors against speculative operations with digital currencies.
According to the new rules, Chinese enterprises should not provide savings, trust or collateral services for cryptocurrencies, as well as issue related financial products. At the same time, although the exchange and the initial offer of cryptocurrency were banned, Beijing did not restrict individuals in their possession.
How long will Binance play cat and mouse?
The ban on Binance’s work in the Chinese jurisdiction only continued the series of troubles of the crypto exchange. For many years, she was known for her carefree attitude to the legislative framework governing cash flows and investments. So far, the crypto exchange has avoided trouble in a rather strange way. But now it looks like the noose is tightening. After the UK, Canada, the USA, Japan and China, it was the turn of the SEC of Thailand and the Cayman Islands to get a closer look at the CZ platform.
Cayman Islands: Binance is not allowed to operate in this jurisdiction. In particular, the regulators of the Cayman Islands indicated that Binance did not take the necessary steps to be able to work under their jurisdiction. As of Friday, the authorities said that Binance Group and Binance Holdings Limited are not registered, are not authorized, and are not regulated in any other way.
However, Binance indicated that it is registered in the Cayman Islands. However, the authorities have no record of applying for a VASPA license from Binance, which is necessary to provide services related to virtual assets. According to a representative of the exchange, Binance has branches registered in the Cayman Islands, but not in the crypto business. Recall that the same misunderstanding was with Malta.
The SEC of Thailand, for its part, filed a lawsuit against Binance on Friday. A criminal case has been initiated against the exchange. She is accused of offering services in the country without a license. The regulator said that it had already warned Binance in April, but it did not deign to respond in time.
Binance’s strategy seems simple. Being online, in fact, it is distributed all over the world, claiming to be recorded here, and then there. So no one really knows what its structure looks like. Regulators do not know what it is at all, and it is located there.
This is an unprecedented case. The proof of this is that this amazing situation lasts for years, and Binance is not much worried. However, with the growing number of regulatory bodies dealing with their case, this golden period may be over.
But, judging by the price of Binance Coin, the market does not seem to be at all concerned about such attention to the Binance business.