SEC is looking into crypto exchange Binance Coin’s native cryptocurrency, according to a report from Bloomberg (BNB). According to the article, the Securities and Exchange Commission is investigating Binance Holdings Ltd. for allegedly violating U.S. securities laws.
Binance was founded in 2017 and its native coin was introduced in July of the same year through an ICO. Initial investors and angel investors, as well as the exchange’s core staff, received the Binance Coin (BNB).
When it went on sale for 15 cents, the cryptocurrency helped Binance raise around $15 million in funding. Improve the platform, expand it, promote it and more using the money.
If the ICO involves unlawful sales of unregistered securities, the Securities and Exchange Commission (SEC) is looking into the subject, Bloomberg reports. The coin is presently one of the most popular in the world and has risen from third to fifth place in market value over the last several months.
According to Binance Coin (BNBcurrent )’s price of $295, it has lost 2% in the previous 24 hours and 4% in the last week. The token has a market capitalization of approximately $48 billion, making it the third-largest cryptocurrency in the world, excluding stablecoins Tether (USDT) and USD Coin (USDC).
Binance’s US subsidiary, Binance.US, is also being investigated by the Securities and Exchange Commission for its separateness from the parent company’s activity. A formal announcement from Binance about the probe is still pending.
Cryptocurrency trading platforms seem to be having a bad day. According to a Reuter’s investigation, Binance has allowed up to $2.3 billion in money laundering to take place on its platform.
Binance denies these allegations and emphasises its involvement in supporting law enforcement authorities in preventing criminals from using its platform for unlawful operations.
Crypto-based enterprises are being sued by the US Securities and Exchange Commission (SEC) for allegedly selling securities that were not registered. For this reason, the Commission is now engaged in a legal dispute with payment processor Ripple and two of its officials.
The legal struggle is far from done, but recent events don’t seem to be in the regulator’s favour. Collins Belton, a legal expert, said the following about the investigation into Binance Coin (BNB):
It’s been five years, and the company’s mcap is larger than most in the United States, so why wait so long to take action? Allowing something to grow to its full potential only to prick it after it has reached its full potential looks like a prescription for consumer damage rather than protection.
Also Read: U.S. Senator Lummis Will Introduce Legislation To Integrate Crypto Into The Banking System
Wallets