Binance could face fraud charges but US regulators are concerned over this factor
- The US regulator is considering bringing in more charges against the world’s largest crypto exchange
- However, the regulators fear the action would result in customers losing money
Binance – the world’s largest crypto exchange – has been the talk of the market ever since the US Securities and Exchanges Commission (SEC) launched a lawsuit in June 2023. And, the exchange’s regulatory burden seems to only be growing.
The regulators now considering bringing fraud charges against the exchange. However, there seems to be one aspect that is holding back the US regulatory authorities.
Regulators hiccup with Binance
According to Semafor, the aspect holding back the regulators is the fear of a bank run similar to the one FTX faced back in November 2022. The bank run was a result of widespread panic over reports of FTT dominating its balance sheet. This resulted in the exchange facing a liquidity crisis, eventually declaring bankruptcy along with its affiliated companies.
With Binance, the regulators fear that the potential panic brought about by the charge could result in consumers losing money. Due to this, the regulators are now looking are considering alternate ways to hold Binance accountable. The regulatory actions could include fines and non-prosecution agreements.
The latest update has not resulted in BNB or the wider market making a signification move. According to CoinMarketCap, at press time, BNB was trading at $240.16 with a market cap of over $36 billion. The coin’s price witnessed a slump of over 1% in the past hour and over 2% in the past 24 hours.
Binance makes its first move in Japan
While the environment seems tense for the exchange in the West, it is seeing positive developments in the East. The crypto exchange re-entered the Japanese market through its acquired subsidiary – SAKURA Exchange Bitcoin Inc.
The exchange will be providing spot trading and Earn services in the region. Additionally, the exchange will be supporting 32 tokens on its spot trading services. This includes BTC, ETH, ALGO, MATIC, XLM, XRP, BAT, BCH, ADA, DOT, DOGE, and ETC. Importantly, the relaunch will allow the exchange’s token BNB to enter the Japanese market for the first time.