Binance Faces Legal Battle as SEC Accuses Noncooperation, Executive Departures, and Trading Activity Decline
Summary:
The legal battle between Binance and the SEC continues as the SEC accuses Binance.US of noncooperation and improper document production. A judge has ordered the unsealing of several documents. Binance.US has seen executive departures and layoffs, leading to a significant decline in trading activity. Meanwhile, India is working on a crypto regulatory framework, and EU lawmakers have voted in favor of a cryptocurrency tax reporting rule. Additionally, U.S. Representative Tom Emmer and co-sponsors have reintroduced a bill to protect financial privacy rights regarding CBDCs.
The legal battle between the United States Securities Exchange Commission (SEC) and crypto exchange Binance continues, with the SEC accusing Binance.US of noncooperation in the investigation. The SEC highlighted that Binance.US's holding company, BAM, has only provided 220 documents during the discovery process, many of which are unintelligible and lack crucial information. The SEC also stated that BAM has refused to produce necessary witnesses for deposition, only agreeing to four depositions of its choosing.
Magistrate Judge Zia Faruqui of the U.S. District Court for the District of Columbia has granted the SEC's motion to unseal or remove redactions from 18 sealed documents and nine partially sealed documents, totaling 117 pages. These documents include internal Binance.US materials, emails, and SEC court filings related to the compliance of Binance.US with discovery efforts.
In the midst of lawsuits from the SEC and the Commodity Futures Trading Commission, Binance.US has announced layoffs of a third of its staff, with its president and CEO Brian Shroder also leaving the company. Two more executives, head of legal Krishna Juvvadi and chief risk officer Sidney Majalya, have also decided to depart from the firm. As a result, trading activity on Binance.US has significantly declined in September, reaching a low of $2.97 million compared to around $230 million during the same period in 2022.
In India, there is no crypto ban as the nation is actively working on a regulatory framework for cryptocurrencies. Based on the joint recommendations of the International Monetary Fund and the Financial Stability Board, India aims to establish legal legislation within the next five to six months. Sidharth Sogani, CEO of a blockchain analytic firm, stated that India's regulatory approach focuses on global collaboration, particularly in areas such as crypto taxation.
In the European Parliament, lawmakers voted in favor of the Directive on Administrative Cooperation (DAC8), which is a cryptocurrency tax reporting rule. The vote saw overwhelming support from 535 members of parliament, with only 57 opposing and 60 abstaining. DAC8 aims to enable tax collectors to track and assess all cryptocurrency transactions conducted by individuals or organizations within member states. Some critics argue that DAC8 diminishes the oversight authority of individual member states.
In the United States, U.S. Representative Tom Emmer and 49 co-sponsors reintroduced the CBDC Anti-Surveillance State Act to the U.S. House of Representatives. The purpose of the bill is to protect the financial privacy rights of American citizens, specifically regarding central bank digital currencies (CBDCs). Emmer argues that a programmable digital dollar issued by the Federal Reserve would be a surveillance tool undermining the American way of life. The bill prohibits the Fed from issuing a CBDC to individuals and using it for monetary policy implementation.
Published At
9/18/2023 7:05:40 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.