Binance in for further problem as Thai regulators file criminal complaint against cryptocurrency exchange

  • Binance has been charged with operating digital assets by Thailand’s financial watchdog
  • Only licensed firms are permitted to provide services related to digital asset trading in Thailand
  • The US Justice Department and the Internal Revenue Service were looking into Binance

On Friday, Thailand’s financial watchdog filed a criminal complaint against cryptocurrency exchange Binance for operating a digital asset business without a license, the latest in a series of regulatory crackdowns on the platform. Binance had been operating a digital asset business in the category of a digital asset exchange without a license, according to Thailand’s Securities and Exchange Commission (SEC). Only licensed firms are allowed to provide services related to digital asset trading in Thailand, according to the SEC.

Another setback for Binance Exchange

Binance has been hit by yet another regulatory snafu. Binance has been charged by Thailand’s Securities and Exchange Commission (SEC) for allegedly operating without a license in the country.

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The Securities and Exchange Commission (SEC) filed the complaint with the Royal Thai Police’s Economic Crime Suppression Division on Friday, according to a statement on the SEC’s website (ECD). Binance was accused of missing a deadline for responding to an earlier warning, according to the complaint. The ECD will continue to investigate and take legal action.

Binance Holdings Ltd. is under investigation by U.S. authorities. Officials probing money laundering and tax offenses have sought information from individuals with insight into Binance’s business, sources say. The firm, like the industry it operates in, has succeeded largely outside the scope of government oversight. Chainalysis Inc. concluded last year that more funds tied to criminal activity flowed through Binance than any other crypto exchange. The company says it takes its legal obligations’very seriously seriously’ and engage with regulators in a “collaboration fashion,” a spokeswoman said in an emailed statement, while others say it doesn’t comment on specific matters or inquiries.

The Price Of The Offense

The Commission had written to Binance in April, warning it about its activities, but had received no response, prompting it to file a criminal complaint with Thai authorities, it said. A Binance spokesperson declined to comment on the Thai complaint but said the company works collaboratively with regulators and takes its compliance obligations seriously.

The penalties for these offenses typically range from two to five years in prison. Furthermore, fines can range from 200,000 to 500,000 baht. A daily fine of up to 10,000 baht will be imposed if the violation continues.

Binance is in the midst of a tumultuous period

The allegation comes at a time when the cryptocurrency exchange is going through a rough patch. A similar matter resulted in a warning from the Japanese regulator. It is also barred from engaging in regulated activity in the United Kingdom, and it has ceased operations in Ontario following regulatory action against other Canadian exchanges.

The company, one of the world’s largest exchanges, was barred from conducting regulated activities in the country by Britain’s financial watchdog last week. Last week, Japan’s regulator said Binance was operating illegally in the country, while Germany’s watchdog warned in April that it risked being fined for offering tokens tied to stocks. The US Justice Department and the Internal Revenue Service began investigating Binance in May. According to the SEC, the complaint filed in Thailand is the start of a criminal procedure, with a police investigation possibly leading to a recommendation to a public attorney with prosecutorial authority. According to data from CryptoCompare, trading volumes on the exchange were $662 billion in June, up nearly tenfold from July 2020.

How many Binance Coins are there in circulation?

Binance tokens have maximum supply of 170,532,785 BNB coins of which 153,432,897 are currently in circulation. The tokens are available for sale on Thursday, October 21, through Binance’s Token Exchange. According to a whitepaper, a quarter of the total supply was allocated towards the initial coin offering (ICO) Another 40% of the maximum supply was distributed among the founding members of the founding team. The remaining 10% was split between angel investors and the founders of the to.

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Andrew Smith
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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