Binance under Global Legal Scrutiny; Changpeng Zhao Faces Jail Time; New Crypto Regulations Enforced
Summary:
Binance, a cryptocurrency exchange, faces a class-action lawsuit in Canada over allegations of breaching local securities laws. Meanwhile, the Philippines' SEC directs Google and Apple to remove the Binance app in the country. In the US, Binance founder, Changpeng Zhao, is convicted of violating anti-money laundering laws and faces three years in jail. The European Parliament has sanctioned new regulations to restrict money laundering involving cryptocurrency firms. Also, the US SEC is reviewing the potential impact of Bitcoin options trading. Lastly, in Hong Kong, mainland Chinese investors are barred from spot Bitcoin and Ether exchange-traded funds despite their approval.
Binance, a cryptocurrency exchange, is facing a new class-action lawsuit in Canada for alleged violations of local securities laws. The Supreme Court of Ontario issued a certification motion for a lawsuit claiming that Binance was dealing in crypto derivative products to retail investors without proper registration. The lawsuit aims to acquire damages and invalidate illegal derivatives trades. It is alleged that an extensive number of Canadian Binance users have invested in its cryptocurrency derivatives.
In the Philippines, the Securities and Exchange Commission (SEC) instructed Google and Apple to remove the Binance app for local users from their app stores. The SEC chair, Emilio Aquino, indicated that conducting business as an "unregistered broker" and selling or offering unregistered securities to the local populace contravenes the national securities regulations.
Binance founder, Changpeng "CZ" Zhao, faces a sentence of 36 months in jail, according to U.S. prosecutors, for admissions of guilt in breaches of anti-money laundering legislation. A substantial fine of $50 million has also been proposed, in addition to the prison sentence.
In related news, the European Parliament has endorsed new regulations introducing formal due diligence obligations for cryptocurrency firms to suppress money laundering. The regulations necessitate businesses to establish intensified due diligence measures and identity checks for their clientele. Cryptocurrency firms must report any suspicious activities to the authorities under the new law.
The U.S. Securities and Exchange Commission (SEC) is carrying out further consultations on a proposed rule amendment for options trading on Bitcoin (BTC). The SEC seeks to gain a deeper understanding of how the listing of Bitcoin options could influence the entire market, particularly during periods of stress.
Lastly, following the approval of spot Bitcoin and Ether (ETH) exchange-traded funds (ETF) in Hong Kong, mainland Chinese investors will be unable to participate in these markets, as explained by Bloomberg data analyst Jack Wang. Although three Chinese asset management firms have established crypto ETFs in Hong Kong, mainland Chinese investors will not receive any exposure to Bitcoin or Ether.
Published At
4/29/2024 10:05:00 PM
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