Jun 07, 2022 21:00:00

U.S. Securities and Exchange Commission reports that it is investigating the crypto exchange Binance

Binance, a major cryptocurrency exchange, can use the cryptocurrency '

BNB ' to pay transaction fees. Bloomberg, a major economic media company, reported that the US Securities and Exchange Commission (SEC) is investigating this BNB.

Crypto Exchange Platform Binance Investigated by SEC Over BNB Token --Bloomberg
https://www.bloomberg.com/news/articles/2022-06-06/us-probes-binance-over-token-that-is-now-world-s-fifth-largest

BNB is a virtual currency issued (ICO) from June 26, 2017 to July 3, 2017, and can be used for payment of fees for Binance related services and payment at compatible stores. Binance has more information about BNB on the following pages.

What is BNB? | Binance Academy
https://academy.binance.com/ja/articles/what-is-bnb

Binance claims that 'BNB was launched through an ICO, but BNB does not provide users with dividends in the interests of Binance, nor does it mean an investment in Binance.' Bloomberg reports that the SEC is investigating 'the possibility that Binance violated the Securities and Exchange Law during BNB's ICO.'

At the time of writing the article, it was not clear which event was a violation of the law, and it is unclear whether the BNB's ICO will be recognized as the jurisdiction of the SEC. Bloomberg analyzes that the fact that 'Binance is discounting fees for payments using BNB' and 'Americans are among BNB buyers' is the key to the SEC's claim of jurisdiction. ..

In addition, the SEC's investigation covers not only BNB but also Binance's American corporation. Binance established Binance.US in 2019 to develop services for the United States and operates as a completely independent organization from Binance. However, the US Securities and Exchange Commission is investigating whether the two companies are completely independent.

Binance told Bloomberg, 'It is not appropriate to comment on ongoing dialogue with regulatory agencies.' 'We are cooperating with the authorities' investigations and will continue to meet all the conditions set by the authorities.' It states. Meanwhile, the SEC declined to comment.