The regulatory storm in the currency circle has resurfaced.A few days ago, the U
The regulatory storm in the currency circle has resurfaced.
A few days ago, the U.S. Securities and Exchange Commission (SEC) sued Yuanan Holdings Co., Ltd. and its founder, Changpeng Zhao, and filed as many as 13 allegations, including "distortion of transaction control and supervision on the Binance.US platform", "misuse of customer funds" and "fraudulent transactions".
The SEC said that Changpeng Zhao and Yuan An were used as assets of customers on the control platform, allowing them to mix or transfer customer assets at will. Among them, SigmaChain, a company controlled by Changpeng Zhao, misled investors by artificially exaggerating the trading volume of Binance.US, manipulating transactions.
In addition, the SEC accused Changpeng Zhao and Yuan An of mixing billions of dollars of investor assets and sending them to MeritPeak, a company also controlled by Changpeng Zhao, on suspicion of abusing customer funds.
Based on the above, Gary Gensler, chairman of the SEC, accused Changpeng Zhao and Yuan An of a large number of deceptions, conflicts of interest, lack of disclosure and systematic evasion of laws, which misled investors in risk control and trading volume. At the same time, the SEC submitted an urgent motion to require the judge to freeze the assets of the platform and remit the Fiat money and Cryptocurrency held by the customers of the platform back to the United States.
In response to this, Coin An responded through a blog that any accusations about Binance. US client assets being at risk are incorrect. It has been actively cooperating with the SEC's investigation and working to answer their questions and resolve their concerns.
Coin An pointed out that the SEC's complaint is aimed at unilaterally defining the structure of the crypto market, and its refusal to engage effectively is just another example of the SEC's conscious refusal to provide much-needed directives and guidance to the digital asset industry.
Despite its strong response to the SEC's allegations, as an important participant in the Cryptocurrency market, the crisis it is facing at this stage still brings pessimism to its investors. Due to the impact of this incident, as of the deadline for publication, the BNB, a native token of Coin An, has plummeted by 10% to $276.72.
On the other hand, the SEC, which holds the initiative, clearly does not intend to give up on this matter. Just one day after the lawsuit against Coinbase, the SEC launched another lawsuit in the Federal Court of New York against Coinbase, the US compliant cryptocurrency trading platform, which is the largest Cryptocurrency exchange in the US. As soon as the news came out, the stock price of Coinbase Global Inc. (Nasdaq: COIN), a holding company, fell by over 20%.
SEC said that Coinbase, the Cryptocurrency trading platform of Coinbase, is engaged in the business of evading supervision, allowing users to trade a large number of cryptocurrencies on the platform. These tokens are actually unregistered securities. Not only did it mislead investors and regulatory agencies, but it also violated securities rules.
As for the recent series of actions of the SEC, industry analysts said that it may make it more difficult to conduct the operation of the Cryptocurrency industry and the transactions of American citizens.
"The U.S. Securities and Exchange Commission under the leadership of Gary Gensler (chairman of the SEC) resolutely implements the rules. If these rules are followed, almost all Cryptocurrency will be eliminated." said Omid Malekan, an adjunct professor at Columbia Business School.
In addition, according to the analysis of foreign media, the SEC's lawsuit aims to prove that many Cryptocurrency assets should belong to the securities category, thus forcing Cryptocurrency developers and exchanges to register with the SEC. This means that the Cryptocurrency industry will adopt a series of costly regulatory rules, including information disclosure for investors and prohibition of certain conflict of interest behaviors.
In fact, under continuous regulatory pressure, more and more encryption companies are planning to "escape" from the United States.
In April of this year, Coinbase pointed out that due to the increasing regulatory uncertainty in the cryptocurrency industry in the United States, its cryptocurrency trading platform will consider withdrawing from the United States; On May 9th, the CEO of Galaxy Digital announced the transfer of business to locations outside the United States, citing difficulties in the regulatory environment. Earlier, Cryptocurrency exchange Bittrex also curtailed its business in the United States.
Gu Yanxi, an expert in the Cryptocurrency industry, said in an interview with the media that this is a good thing for the crypto digital asset industry in the long run. With fewer non compliant trading venues and more compliant trading venues, the legal currency channel flowing to encrypted assets will be much wider. As the market gradually recognizes encrypted assets, the industry will thrive.
Jiupai Finance and Economics noticed that today the prices of Cryptocurrency such as Bitcoin, Ethercoin and Dogecoin have rebounded. As of press release, Bitcoin rose 4% within 24 hours, Dogecoin rose 3.9%, Ether rose 2.8%, but Coin still fell.
Jiupai Finance Intern Journalist Huang Yiting
Editor Guo Zihao
[Source: Jiupai Finance]
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