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Cayman Islands’ Monetary Authority announces investigation into Binance’s ‘activities’

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Binance, the world’s largest cryptocurrency exchange in terms of trading volume, is facing the music yet again on the heels of the UK-FCA fiasco a couple of days ago. It is in the news again today after the British overseas territory of Cayman Islands became the latest to criticize Binance’s operations, if any, in its jurisdiction.

A public statement issued by the Cayman Islands Monetary Authority (CIMA) read,

“The Cayman Islands Monetary Authority (the “Authority”) wishes to inform the public that Binance, the Binance Group, and Binance Holdings Limited are not registered, licensed, regulated, or otherwise authorized by the Authority to operate a crypto-currency exchange from or within the Cayman Islands.”

Right now, regulatory watchdogs are investigating the crypto-exchange to check whether, “Binance, the Binance Group, Binance Holdings Limited” or any other company affiliated with this group of companies has any activities “operating in or from within the Cayman Islands which may fall within the scope of the Authority’s regulatory oversight.”

It should be highlighted, however, that the CIMA didn’t accuse Binance and its executives of any potential wrongdoing. Not yet at least.

Under CIMA regulations, companies providing virtual asset services or custodian services as a business within the Cayman Islands must be registered or licensed under VASPA, or should be granted a waiver by an authority under the same.

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This isn’t the first regulatory rodeo Binance has found itself in, however. Not so long ago, Singapore’s Monetary Authority too reviewed Binance Asia Services Pte’s license application as its parent company came under regulatory scrutiny worldwide. What’s more, after the FCA’s notice to Binance, its officials were quick to clarify where its headquarters are,

“Binance.com has always operated in a decentralized manner. Binance.com does not run a cryptocurrency exchange out of the Cayman Islands, as reported incorrectly in some media articles previously.”

A representative for the exchange added,

“We do, however, have entities incorporated under the laws of the Cayman Islands performing activities that are permitted by law and not related to operating crypto-exchange trading activities. We will work with regulators to address any questions they may have.”

In light of the above, it’s worth taking a look at the General Registry’s records for the Cayman Islands.

Source: Cayman Islands business registration record

According to the same, at least one, i.e Binance Holdings Limited, might indeed be established as a business entity within the territory of the Cayman Islands.

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Shubham is a full-time journalist at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on crypto-regulations across the United States and Europe. Also, a die-hard Chelsea fan #KTBFFH.

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