US regulator wants closer look at Binance Chain transactions

The U.S. Securities and Exchange Commission (SEC) is gearing up to investigate Binance.

In a memo, the U.S. regulator announced that it has awarded a contract to blockchain firm CipherTrace whose “products are the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network.” This move as well as the explicit Binance call out signals that the SEC is interested in investigating the activity taking place on the platform.

Bucket shop Binance has launched trading pairs on a number of digital currencies, including those that have not registered with proper government and financial agencies. An individual who wishes to remain anonymous once said to me, “let’s be real, CZ (the CEO of Binance) is going to jail, it’s just a matter of whether he will go to jail in the United States or overseas.” 

From the looks of the SEC’s contract with CipherTrace, it seems like federal law enforcement officials are closing in on Binance.

Governments have been cracking down on Binance

Government agencies around the world have already cracked down on the digital currency exchange. In the past month alone, both Brazil and Malaysia have told Binance to stop operating in their jurisdictions. 

Malaysia said Binance was “operating a recognized market without authorization from the SC” and advised Malaysian citizens “not to make any investment with companies/individuals that are not licensed or approved by the SC.” Afterward, Malaysia added Binance to its list of unauthorized websites, investment products, companies, and individuals.

Meanwhile, Brazil accused Binance of operating an unauthorized derivatives exchange and ordered the company to “immediately suspend the broadcasting of any public offering of securities intermediation services, directly or indirectly, including through the use of internet pages, applications or social networks.”

As you can see, government agencies around the world are beginning to crack down on Binance for illegally operating in their country, and by the looks of it, the United States government has plans to catch Binance red-handed and then press charges against the criminal exchange.

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