Binance Coin (BNB) is under investigation by the U.S. SEC

According to Bloomberg, the US Securities and Exchange Commission has opened an investigation into crypto exchange Binance’s native token Binance Coin (BNB). According to the article, the Commission is looking into Binance Holdings Ltd. for potentially violating US securities legislation.

Binance was founded in 2017, and in July of the same year, it issued its native coin through an Initial Coin Offering (ICO). Binance Coin (BNB) was distributed to the exchange’s core team and early backers and angel investors. The coin was sold for 15 cents during its public sale, assisting Binance in raising approximately R231 million in funds. The funds were utilized to upgrade the platform, as well as for growth, marketing, education, and other purposes.

According to Bloomberg, the Commission is investigating whether Binance should have registered BNB as a security and whether the ICO represents the illegal selling of an unregistered security. The token is currently one of the most popular in the world, having moved from third to fifth place in terms of market capitalization. Binance Coin (BNB) is trading at R4 540 at the time of writing, down 2% in the past 24 hours and 4% in the last seven days.

The cryptocurrency has a market worth of approximately R739 billion, ranking third behind stablecoins Tether (USDT) and USD Coin (USDC), and appears to be negatively reacting to the news.

The Commission may also be examining Binance.US, Binance’s subsidiary, to evaluate if the company is separate from its parent company’s business, according to additional information claims. Binance has yet to publish an official comment in connection with the probe.

The crypto exchange platforms appear to be having a rough day. Earlier today, Bitcoinist reported on a Reuter investigation stating that Binance’s platform has facilitated up to R35.4 billion in money laundering.

Binance denies these allegations and emphasizes its role in supporting law enforcement agencies in preventing criminals from using its platform for unlawful purposes.

The Binance Coin (BNB) Is XRP the new XRP?

The Securities and Exchange Commission (SEC) of the United States has filed lawsuits against cryptocurrency-based enterprises for allegedly marketing unregistered securities. For this reason, the Commission is now engaged in a legal struggle with payment firm Ripple and two of its executives.

The legal struggle is far from done, but recent developments do not appear to be in the regulator’s favour. In this regard, legal expert Collins Belton commented on the Binance Coin (BNB) investigation as follows:

“It’s been 5 years and its mcap is higher than most US companies, why wait this long to take potential action if you’re concerned about potential harm? Letting things balloon only to prick it once-massive seems like a recipe for inducing consumer harm rather than staving it off.”

Binance Coin (BNB) is under investigation by the U.S. SEC

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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