According to Bloomberg, the SEC is investigating whether Binance currency’s initial coin offering should have been registered as a security.
Binance’s spokesperson told CoinDesk via email, “Without commenting on the details of the reported probe,” “We have been working very hard to educate and assist law enforcement and regulators in the United States and internationally as the industry has grown at a rapid pace, while also adhering to new guidelines. We will continue to meet all regulatory standards.”
The Justice Department, the Commodity Futures Trading Commission (CFTC), and the Internal Revenue Service are all investigating Binance in the United States. Binance is the largest cryptocurrency exchange in the world, and it claims it is not based in any one country.
The SEC is also looking into market-making companies that conduct business with Binance and are completely or substantially controlled by Binance CEO Changpeng Zhao.
Bloomberg said that a person familiar with the study said that US, a US-based affiliate of the global exchange, was under investigation.
One of the SEC’s main concerns, according to the report, is if Binance.us is truly independent of the global exchange and whether staff are engaging in insider trading.
A spokeswoman for the Securities and Exchange Commission (SEC) declined to comment on the possibility of an investigation. At the time of reporting BNB price ($282.40) down by 8.10%.
Newsletter
Want more stuff like this?
Get the best viral stories straight into your inbox!
