Binance US has been under scrutiny by the US Securities and Exchange Commission (SEC) over its alleged unregistered trading of securities. A senior official of the SEC has recently made public remarks indicating that Binance US is operating an unregistered securities exchange. This has caused a stir in the crypto community and raised concerns about the legality of Binance US’s activities. In this article, we will clarify what Binance US is, what it offers, and what its securities trading status is.
What is Binance US?
Binance US is a US-based cryptocurrency exchange that is a subsidiary of Binance, the world’s largest cryptocurrency exchange by trading volume. Binance US was launched in September 2019 to cater to US customers and comply with US regulations. It offers trading in a range of cryptocurrencies, including Bitcoin, Ethereum, and XRP, and provides various features such as advanced trading tools, margin trading, and staking. Binance US is registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business (MSB) and has obtained state licenses to operate in certain states.
What is securities trading and why does it matter?
Securities trading involves the buying and selling of financial instruments that are regulated by the SEC. These instruments include stocks, bonds, options, and investment contracts. Securities trading is subject to a range of laws and regulations that aim to protect investors from fraud and ensure fair and transparent markets. The SEC requires securities exchanges to register with it and comply with its rules to ensure that they operate in a manner that protects investors and the public interest.
What has the SEC said about Binance US’s securities trading status?
The SEC has not officially commented on Binance US’s securities trading status, but a senior official of the SEC has recently made public remarks indicating that Binance US is operating an unregistered securities exchange. The official stated that “Binance US is engaging in activity that requires registration with the SEC and they are not registered.” However, the official did not provide any details or evidence to support this claim.
Binance US’s response
Binance US has responded to the SEC’s allegations by stating that it “takes its legal obligations very seriously and is committed to compliance with all applicable regulations.” Binance US has also clarified that it does not offer securities trading and that it is “a digital asset marketplace that offers spot trading for cryptocurrencies.”
Conclusion
In conclusion, Binance US is a US-based cryptocurrency exchange that offers trading in a range of cryptocurrencies and is registered with FinCEN as an MSB. While the SEC has not officially commented on Binance US’s securities trading status, a senior official has made public remarks indicating that Binance US is operating an unregistered securities exchange. However, Binance US has denied these allegations and stated that it does not offer securities trading. It remains to be seen how the situation will evolve and whether the SEC will take any enforcement action against Binance US.
Sources
Binance US website: https://www.binance.us/
SEC official statement: https://www.reuters.com/business/finance/sec-official-says-binances-us-unit-engaging-unregistered-securities-activity-2022-02-09/
Investopedia on securities trading: https://www.investopedia.com/terms/s/securities.asp