The United States subsidiary of the world’s biggest cryptocurrency exchange, Binance.US, is ready to counter the Securities and Exchange Commission (SEC). The SEC claims that the exchange offered unregistered investment products and violated the anti-fraud provisions. Binance US did not take the allegations lying down. It vehemently denied them and vowed to fight them in court.
Binance.US Ready to Challenge SEC Charges
Binance US, however, has said that it is willing to defend against the SEC charges noting that the platform has adhered to the existing guidelines even where there has been limited guidance from the SEC. In the case that was recently heard in court, the claims against the exchange regarding the staking program, selling BNB tokens after the ICO, and anti-fraud violations were granted to proceed. The court also accepted Changpeng “CZ” Zhao, former CEO of Binance, as a control person, which is a very important aspect in the case presented by the SEC.
On Friday, the Court decided that the SEC’s case against https://t.co/AZwoBOh0gq will continue. We were prepared for this and look forward to having this case move forward in the judicial process.https://t.co/AZwoBOh0gq was established with the express purpose of serving United…
— Binance.US 🇺🇸 (@BinanceUS) July 1, 2024
Somewhat of a reprieve, Judge Amy Berman Jackson ruled that she was dismissing the claims that pertained to secondary market sales of BNB and all the sales linked to the Binance USD (BUSD) stablecoin. The judge also mentioned a similar decision when the SEC was suing Ripple, which formed a basis for the dismissal of some of the SEC’s claims against Binance.US.
Binance.US Secures Global Regulatory Approvals
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Still, up to now, Binance.US insists that the platform is highly compliant and has strict risk standards to safeguard the platform from any form of risk. The company claims a 1:1 reserve for all customer assets, thus proving its focus on the welfare of the customer and adhering to the set rules.
The exchange has lately also been in the process of getting licenses from other countries to operate legally. For instance, Binance registered with the Financial Intelligence Unit of India (FIU-IND) and received a license from the Dubai Virtual Asset Regulatory Authority (VARA). These approvals enable Binance to serve retail, qualified, and institutional clients.
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Nevertheless, the exchange is growing at an incredibly fast pace, which is rather unusual for an organization under such legal pressure. In the last two years, the platform has drastically grown its user base, from 130 million users in 2022 to over 200 million in the first half of 2024. This growth is in harmony with Binance’s status as the largest exchange in the world, in charge of managing assets worth $100 billion in cryptocurrencies.
