Binance\u2019s operations continue to contract as regulators across the globe tighten oversight of the beleaguered cryptocurrency exchange. Last Thursday, Italy\u2019s Consob securities regulator warned local investors that no Binance Group company was authorized to provide investment services and activities in the country. Consob urged investors to \u201cexercise the utmost caution\u201d in any transaction involving digital currencies and to recognize that they could get rug-pulled at any minute. A day later, Lithuania\u2019s central bank issued a warning that the Vilnius-based Binance UAB was offering \u201cunlicensed investment services\u201d in the country. The UAB offshoot, which is owned by Binance founder Changpeng \u2018CZ\u2019 Zhao, was listed as a payment \u2018agent\u2019 for the Binance Group and until recently was described as a Binance \u2018operator\u2019 in the exchange\u2019s terms of service. Those terms defined the \u2018operator\u2019 designation as \u2018parties that run Binance,\u2019 yet the company told the Financial Times that Binance UAB \u201cdoes not operate or control Binance.com.\u201d Sticking with its \u2018who you gonna believe \u2013 me or your own eyes\u2019 defense strategy, Binance declared that the Lithuanian warning didn\u2019t \u201cdirectly impact\u201d services offered via Binance.com. That same day, Hong Kong\u2019s Securities and Futures Commission announced that the Binance Group lacked the authority to conduct any regulated activity in the special administrative region of China. The regulator warned investors that Binance had no local license under which it could offer its stock token products, while simultaneously warning Binance that it \u201cwill not hesitate to take enforcement action against unlicensed platform operators.\u201d\u00a0 Appearing a little more rattled by events tied to China, Binance rushed out a statement saying it had implemented an immediate halt to new stock token sales. Existing token holders will have 90 days in which to sell or close their positions, after which Binance will permanently close these positions. Through a partnership with investment firm CM-Equity AG, Binance had offered customers the ability to buy tokens representing fractions of shares in tech companies such as Apple, Coinbase, Microsoft, MicroStrategy and Tesla. Binance attempted to polish its Hong Kong turd by claiming it had independently chosen to \u201cshift our commercial focus to other product offerings\u201d but the legally sketchy stock tokens were previously called out by Germany\u2019s securities regulator this spring. That opened the possibility that CZ might be required to shift his butt to a German prison if his oft-repeated public homages to compliance didn\u2019t shift to something more tangible.\u00a0 Unstablecoin Binance\u2019s stock tokens settled prices in the company\u2019s Binance USD stablecoin, which is the third largest stablecoin by market cap (behind only Tether and Circle\u2019s USDC). But heightened regulatory concern over stablecoins led CZ to attempt to distance his company from BUSD last Friday through a tweet that claimed the token \u201cis actually not issued by Binance. We lend branding support only.\u201d https:\/\/twitter.com\/iamZatoshi\/status\/1415950708281593861?s20 CZ has issued some howlingly comical statements regarding Binance\u2019s legally sketchy operations in recent months\u2014including last week\u2019s declaration that Binance was thoroughly enjoying its compliance \u2018journey\u2019 \u2013 but this one takes the biscuit. Without Binance listing and promoting trading of the stablecoin via its exchange, BUSD wouldn\u2019t enjoy its privileged position, if it existed at all. CZ appears to have watched the original Star Wars movie one too many times and is now convinced that he can escape regulatory blowback by employing Jedi mind tricks. We hate to break it to him, but telling regulators \u2018these aren\u2019t the tokens you\u2019re looking for\u2019 isn\u2019t going to cut it. Your cooperation is (un)appreciated The past few weeks have seen regulatory shots across Binance\u2019s bow in numerous jurisdictions, leading to the loss of major payment rails in the U.K. and the European Union. Regulators on multiple continents have warned Binance to GTFO or face the consequences, while several U.S. federal agencies are reportedly probing Binance executives\u2019 potential involvement in suspected money laundering and tax evasion cases. The ham-fisted nature of Binance\u2019s compliance theater was amply demonstrated by a recent Bloomberg report that revealed the exchange had been soliciting letters of commendation from U.S. federal agencies for aiding the authorities\u2019 efforts to stem the flow of ill-gotten gains through Binance.com. The U.S. Department of Justice (DoJ) reportedly instructed other federal agencies to stop signing these letters, the wording of which was sent by Binance to the agencies in question. The DoJ reportedly reminded these agencies that compliance isn\u2019t a favor Binance has the option of granting, at least, not if it wants to retain the illusion of compliance that the company loves to project. Burn, baby, burn Binance\u2019s regulatory future appears so untenable that Sunday\u2019s announcement of the second-largest quarterly burn of its in-house Binance Coin (BNB) token\u2014the destruction of nearly 1.3 million BNB equal to nearly US$394 million\u2014proved incapable of pumping BNB\u2019s value. Quite the opposite, as BNB\u2019s value was down 7% by midday Monday, a greater percentage decline than the overall crypto market suffered on the day. The market appears to be treating Binance like it\u2019s the subject of Lynyrd Skynyrd\u2019s eerily prophetic That Smell, which warned that even as you insist that \u2018you\u2019ll be alright come tomorrow, tomorrow might not be here for you\u2019. https:\/\/www.youtube.com\/watch?verg2vyJ2UOk As Binance circles the drain in such public fashion, CZ\u2019s public obfuscations appear ever more desperate. This negative sentiment, along with the increasingly pejorative view of the Tether and USDC money-printers\u2019 lack of clarity regarding their financial reserves, is weighing down the whole crypto sector. Then again, perhaps this is just a necessary purge of bad actors that will allow the digital currency sector to finally achieve the legitimacy that Binance appears so eager to avoid. Follow\u00a0CoinGeek\u2019s Crypto Crime Cartel series, which delves into the stream of groups \u2014 from BitMEX\u00a0to\u00a0Binance,\u00a0Bitcoin.com,\u00a0Blockstream,\u00a0ShapeShift,\u00a0Coinbase,\u00a0Ripple\u00a0and\u00a0 Ethereum\u2014who have co-opted the digital asset revolution and turned the industry into a minefield for na\u00efve (and even experienced) players in the market.