crypto exchange Binance responded to accusations by U.S. regulators

crypto exchange Binance responded to accusations by U.S. regulators

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Author: Liam Miller
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crypto exchange Binance responded to accusations by U.S. regulators
The world's largest crypto exchange is preparing to defend itself against the SEC charges but promises to cooperate with the investigation. Net asset outflows from Binance totaled $1.4 billion in the hour after news of the lawsuit surfaced

Cryptocurrency exchange Binance has issued a response to the SEC's lawsuit. Binance said it is disappointed with the regulator's decision as it is actively cooperating with the investigation and is willing to negotiate a settlement to the claims.

Binance is the world's largest cryptocurrency exchange with daily trading volume above $11 billion and analyst services estimate that the net outflow of user assets from Binance was about $1.4 billion or 2.2% of the exchange's total reserves of $62.5 billion just an hour after the news of the SEC's lawsuit surfaced.

Binance has stressed its intention to defend itself against the SEC charges. The exchange blames the agency for the lack of productive engagement and failure to provide clarity and guidance for the digital asset sphere.

Binance is also concerned that the SEC has called some tokens unregistered securities. Such decisions, made without cooperation and consideration of jurisdictions, only exacerbate the regulatory challenges facing the industry, the crypto exchange states.

Binance refutes claims that user funds on its affiliated Binance.US platform were ever at risk. It claims that the SEC's actions are motivated by a power struggle over jurisdiction, not a concern for investor protection.

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"Since Binance is not a U.S. exchange, the SEC's actions are limited in scope. Nevertheless, we stand together with digital asset marketers in the U.S. against the SEC's overreach and are prepared to fight it to the fullest extent of the law," the exchange wrote.

Today, June 5, it became known that the SEC has filed a lawsuit against Binance, it's head Changpeng Zhao and several affiliates for violating the rules of securities trading. The court document shows that the commission recognized the BNB token, as well as the BUSD stablecoin, which carries the exchange's brand, as securities.

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The indictment equated a number of other crypto-assets with securities: Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS) and COTI (COTI).

The price of each of them reacted with a drop of 6-8%. At the same time, tokens of some of the decentralized crypto exchanges, which are not influenced by the regulator, on the contrary, mirrored the growth in price. Among them are assets of dYdX (DYDX) and Trader Joe's (JOE) platforms.

Also today there were reports that Zhao's successor in the role of СЕО of the exchange can become the head of Binance in Asia, Europe, and the Middle East, Richard Teng. Zhao himself said that the exchange continues to operate as usual and called the current situation an attack on the industry.

 

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