Reporter: Li Menglin Intern Reporter: Zheng Yuhang Editor: Gao HanOn June 7th, Bloomberg reported that according to insiders, the US Securities and Exchange Commission (SEC) is investigating the world's largest digital currency exchange, Coin On, which may have violated securities rules when it first sold Coin On Coin (BNB) five years ago.According to reports, BNB is currently the world's fifth largest digital token in terms of market value
Reporter: Li Menglin Intern Reporter: Zheng Yuhang Editor: Gao Han
On June 7th, Bloomberg reported that according to insiders, the US Securities and Exchange Commission (SEC) is investigating the world's largest digital currency exchange, Coin On, which may have violated securities rules when it first sold Coin On Coin (BNB) five years ago.
According to reports, BNB is currently the world's fifth largest digital token in terms of market value. Insiders said that the SEC is investigating whether the BNB tokens sold by Coin On in 2017 constitute unregistered securities sales. The focus of the investigation is whether BNB was a security when it was sold in 2017.
The Daily Economic News reporter noted that in a statement on June 7th, Coin On stated that "we are not suitable to comment on the ongoing dialogue between us and regulatory agencies," the company added, "We will continue to meet all the requirements set by regulatory agencies
Bloomberg commented that Coin operates the world's largest cryptocurrency exchange and stated that it is not located in any country, but its branches are scattered around the world. It has become a focus of investigation in the United States, which is strengthening its regulation of cryptocurrencies. Coin An has also been investigated by the US Department of Justice, the US Commodity Futures Trading Commission, and the US Internal Revenue Service before.
The Daily Economic News reporter noticed that BNB was launched in 2017, and Coin On stated in a white paper at the time that BNB's issuance would be limited to 200 million, with half of the tokens sold through initial token offerings (ICOs), and 85% of the funds raised would be used to establish and promote Coin On's global exchange; 80 million pieces will be reserved for the founding team of Coin An, including its CEO Zhao Changpeng.
Bloomberg reported that in order to attract investors to buy BNB, Coin An has provided lower transaction 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.
The SEC rejected Bloomberg's request for comment, and Bloomberg stated that the SEC's enforcement investigation may not result in regulatory agencies suing companies or individuals. An insider revealed that the investigation involving BNB may take several months.
During the COVID-19 pandemic, cryptocurrency rose rapidly, and the value of BNB soared. The issue price of this currency was 0.15 dollars per piece, which fell after reaching a nearly one-year high of 669.7 dollars last November. As of press release, the price of BNB has dropped by about 8.4% in the past 24 hours, at approximately $284 per piece.
Image source: CoinGecko screenshot
Source of cover image: Photographic network-500798834
Daily Economic News
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