After getting an entry into the European markets, the regulatory backlash towards Binance was cooling down. However, it seems that the largest cryptocurrency exchange in the world has once again found its way into troubled waters.
The latest report published by Bloomberg states that the Securities and Exchange Commission of the United States has opened an investigation on the native token of Binance.
At present, the SEC officials are trying to ascertain whether the BNB token started as digital security when it was first debuted in 2017. The prosecution is investigating the early days of the Binance exchange when the token was introduced to the crypto investors in the form of an ICO event.
Gary Gensler, the newly appointed head of SEC under the Biden administration, has claimed on several occasions that the regulatory agency will bring more lawsuits on the crypto sector under his reign. The first case of this sort against Ripple Labs’ native token XRP is still ongoing in court despite the passing of one year.
On the other hand, the White House has also issued a crypto EO that requires several government agencies to research and conduct a report on the impact of cryptocurrencies on the American economy. Gensler has stated on several occasions that some organizations might be using cryptocurrency as a cover for soliciting unregistered securities.
Binance Struggles to Get Regulatory Approval in Different Countries
Binance is the largest cryptocurrency exchange in the world. However, the organization has faced many issues with regulatory approval from a long list of agencies in different jurisdictions. In addition to the BNB token, SEC is also working with the Internal Revenue Service, CFTC, and Department of Justice to investigate the US branch of the Binance exchange.
It is worth noting that recently Binance’s CEO has been planning to make a big investment in the Web3 initiative. According to the latest reports, Binance has planned to raise and invest $500 million exclusively for its Web3 ventures.
However, with the new series of regulatory pressure, Binance might have to postpone the project indefinitely. Meanwhile, Binance is also responding to the allegations of money laundering by Reuter’s journalists.
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