Giovanni Russo A crypto-compliance lawyer has suggested that actions taken by the U.S. Securities and Exchange Commission (SEC) could potentially influence Binance’s operations in different regions, including its license application process in Hong Kong. The legal expert posits that the U.S. regulator aims to fully expel the leading cryptocurrency exchange from the American market.
US SEC’s Stance on Binance is Uncommon, States Law Professional
“Binance is perceived differently by the SEC compared to USDT,” says Gilbert Ng, a lawyer licensed in Hong Kong, as reported by Chinese cryptocurrency reporter and blogger Colin Wu, popularly recognized by his Twitter moniker ‘Wu Blockchain.’
Ng is of the opinion that the U.S. securities watchdog is attempting “to completely drive Binance out of the United States.” This move, he notes, could potentially impact the digital currency trading platform’s operations in other regions, including its ongoing license application process in Hong Kong.
The SEC recently took legal action against Binance, the globe’s largest cryptocurrency exchange by trading volume, petitioning the court for authorization to freeze digital assets managed by its U.S. subsidiary. The regulatory body alleges that multiple tokens listed on Binance are unregistered securities.
Furthermore, the SEC claims Binance is in violation of U.S. securities laws concerning registration, due to the unregistered offer and sale of its cryptocurrencies, including the Binance Coin (BNB) and Binance USD (BUSD) stablecoin. Compared to major stablecoins like Tether (USDT), BUSD provides its holders with certain benefits on the Binance platform.
Ng further highlighted that while the U.S. lacks specific legislation and regulations pertaining to cryptocurrencies, it still has to enforce existing laws. This gap in legislation brings uncertainty in the supervisory domain, unlike in Hong Kong which has a well-defined framework, he elucidated in a series of tweets from Wu Blockchain on Wednesday.
Additionally, Hong Kong’s definition of securities differs from that of the U.S., Ng observed. What might be classified as security tokens in the U.S., might not be the case in Hong Kong, where only professional investors are currently allowed to buy such tokens.
On June 1, authorities in China’s special administrative region began accepting license applications from digital asset service providers like cryptocurrency exchanges. This will permit them to offer services to retail investors in Hong Kong, including the trading of digital currencies like bitcoin and ether.
Do you believe the SEC’s actions in the U.S. will affect the regulatory climate in other regions? We welcome your insights and perspectives on this matter in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about SEC Actions on Binance
What is the US SEC’s recent action against Binance?
The U.S. Securities and Exchange Commission (SEC) has recently sued Binance, the world’s largest cryptocurrency exchange by trading volume. They are seeking court approval to freeze digital assets controlled by Binance’s U.S. subsidiary, alleging that several tokens listed on the exchange are unregistered securities.
How is this SEC action expected to affect Binance’s operations worldwide?
According to Gilbert Ng, a Hong Kong-licensed lawyer, the SEC’s action against Binance in the U.S. might influence the exchange’s operations in different regions. This includes potentially affecting Binance’s license application process in Hong Kong. Ng believes that the U.S. regulator is aiming to entirely expel Binance from the American market.
How does the SEC’s stance towards Binance differ from its stance towards USDT?
Ng points out that the SEC perceives Binance differently from USDT, although the specific differences are not detailed in the text. The SEC has taken significant action against Binance, including legal proceedings and attempts to freeze the exchange’s assets.
How could the SEC’s actions affect Binance’s coin, Binance USD (BUSD)?
The SEC alleges that Binance violated U.S. securities laws regarding the registration of its own crypto assets, including the Binance Coin (BNB) and the Binance USD (BUSD) stablecoin. The exact impact on these coins is yet to be determined.
What is the current status of cryptocurrency laws and regulations in the U.S. and Hong Kong?
As per Ng, while the U.S. lacks specific laws and regulations concerning cryptocurrencies, it still needs to enforce the existing laws, creating an uncertain supervisory environment. In contrast, Hong Kong has a clear regulatory framework for cryptocurrencies. Additionally, Hong Kong’s definition of securities differs from that of the U.S.
What is the current status of license applications from digital asset providers in Hong Kong?
From June 1, authorities in China’s special administrative region started accepting license applications from digital asset service providers like cryptocurrency exchanges. The licenses will permit these platforms to provide services to retail investors in Hong Kong, including the trading of digital currencies like bitcoin and ether.
More about SEC Actions on Binance
- Binance’s Official Website
- U.S. Securities and Exchange Commission (SEC)
- Hong Kong’s Securities and Futures Commission (SFC) Guidelines on Crypto Asset Trading
- Information about USDT (Tether)
- Current Status of Cryptocurrency Regulations Worldwide
- Understanding Binance Coin (BNB) and Binance USD (BUSD)
- Colin Wu’s Twitter (Wu Blockchain)
6 comments
I can’t believe what the SEC’s doing! Really think this is gonna affect Binance worldwide? Seems a bit overblown to me.
dont get it, why is the SEC so tough on Binance but not USDT? Seems like double standards imo…
If you ask me, regulation is a good thing, brings credibility. Binance will bounce back stronger, just watch!
Why can’t the US just sort out their crypto laws? Look at Hong Kong, they’ve got it sorted. The rest of us just stuck waiting.
Could this affect my BNB tokens?? Worrying times ahead…
Hong Kong’s rules are different, so how will this impact Binance there? I’m not convinced yet…