A few days ago, it was reported that the US Securities and Exchange Commission (SEC) launched an investigation on the native token BNB of Coin Security in the cryptocurrency exchange.According to the news, the SEC is investigating whether the sale of BNB tokens by its founder Zhao Changpeng, Binance, the world's largest cryptocurrency exchange, constitutes an unregistered securities sale during its initial token issuance (ICO) in 2017
A few days ago, it was reported that the US Securities and Exchange Commission (SEC) launched an investigation on the native token BNB of Coin Security in the cryptocurrency exchange.
According to the news, the SEC is investigating whether the sale of BNB tokens by its founder Zhao Changpeng, Binance, the world's largest cryptocurrency exchange, constitutes an unregistered securities sale during its initial token issuance (ICO) in 2017.
In May, SEC Chairman Gary Gensler requested lawmakers to increase the agency's execution budget, as it aimed to require cryptocurrency trading platforms to be registered with the SEC. According to the SEC's definition, many cryptocurrency trading platforms are trading securities rather than commodities, and therefore should be registered with the institution for regulatory purposes. According to a person familiar with the matter, the investigation involving Coincoin may take several months to reach a conclusion, and regulatory authorities may not sue companies or individuals. But if the US SEC does consider BNB as a security, it means that Coin Security must comply with the agency's regulatory and registration requirements.
Coin An stated in a statement that it will not comment on the ongoing investigation by regulatory authorities and is willing to cooperate with all requests made by regulatory authorities.
Prior to the launch of BNB in 2017, Coin An elaborated on this token issuance plan in a white paper. The document mentions that its circulation will be limited to 200 million, with half of the tokens being sold through initial token offerings (ICOs) on multiple global platforms, and the remaining 80 million will be left to the team of Coin An, including CEO Zhao Changpeng.
Market news shows that in order to attract investors to buy BNB, Coin An has provided lower trading rates for traders who use BNB to purchase other cryptocurrencies. At least one US citizen claimed to have purchased BNB during the Coin Security ICO period - this detail may be key to the SEC's claim of jurisdiction in investigating BNB.
In addition to being suspected of selling unregistered securities, there have also been media reports recently that investigations into the activities of Coin An Financial have shown that the exchange platform has assisted in laundering no less than $2.35 billion in corrupt funds within five years.
It is understood that in response to the suspicion of money laundering, Coin An responded: "Ignoring authors and experts who select data, they rely on" leaks "provided by regulatory agencies that cannot be verified, and promote encryption paranoia for reputation or economic gain. On the contrary, only look at the facts. Our industry and currency security are not perfect, but we have achieved leapfrog development in the past three years. Encryption is a completely new innovation. Like many regulatory agencies and policymakers, we are still studying what an appropriate regulatory framework should look like. According to Chainalysis, a blockchain analysis company specializing in encryption and blockchain analysis, 0.15% of all transactions using cryptocurrency in 2021 were related to certain types of illegal activities. The United Nations estimates that 2% to 5% of the traditional legal currency (cash), calculated in current dollars, is about 800 billion to 2 trillion dollars, related to some type of illegal activities. Cryptocurrency is very transparent, more transparent than traditional cash economy, and this is well documented
This article originates from Caitong Society
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
