Another Hit For Binance
Yet another regulatory fiasco has hit Binance. The SEC of Thailand has filed a criminal complaint against Binance for allegedly operating without a license in the nation.
According to a statement on the SEC’s website on Friday, the securities regulator filed the complaint with the Economic Crime Suppression Division of the Royal Thai Police (ECD). The complaint alleging that Binance had failed to meet a deadline for responding to an earlier warning. The ECD will further investigate and proceed legally.
The Offense
On Friday, the SEC said that the exchange encouraged the Thai public to utilize its services via its website or the Facebook page “Binance Thai Community.”
“The aforementioned activities of Binance is liable to operating digital asset business in the category of digital asset exchange without a license,” it said.
The Cost Of The Violation
According to SEC, only those who have received the necessary licenses under the legislation can perform services connected to digital asset trading. These include exchange, depository, transfer, withdrawal, or any other digital asset transactions.
The regulator stated that it had sent Binance a warning letter on April 5. However, the exchange had not responded.
These violations generally result in prison sentences ranging from two to five years. In addition to that fines range from 200,000 to 500,000 baht. If the violation continues, a daily fine of up to 10,000 baht would be levied.
Binance Caught In A Turbulent Time
The allegation comes at a turbulent time for the cryptocurrency exchange. It has received a warning from the Japanese regulator for a similar matter. It is also prohibited from undertaking regulated activity in the United Kingdom and has ceased operations in Ontario after regulatory action against fellow exchanges in the Canadian province.
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