Crypto Chronicles: BitOK's Weekly Recap of Top Regulatory News
Get a quick and easy update on last week's top headlines with BitOK.
1. Binance is being investigated in France for suspected money laundering
The investigation focuses on allegations that Binance illegally provided digital asset services to French customers and had poor anti-money laundering measures in place. Binance's French unit is accused of operating as a digital asset service provider before receiving regulatory approval and participating in activities related to money laundering. Binance says they cooperate with regulators and follow the law. The company’s CEO confirmed that the authorities visited their office, but other crypto companies have also been investigated. Binance had previously expressed its commitment to the French market and had invested in the growth of the French crypto ecosystem. Meanwhile, France has been actively attracting cryptocurrency companies as the European Union moves to regulate the crypto industry under its new Markets in Crypto Assets (MiCA) framework.
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2. The Middle Eastern arm of OKX has obtained a preparatory license from the Dubai Virtual Assets Regulatory Authority
This allows them to prepare for full operation once the license is active. OKX Middle East plans to expand its staff and offer various services, including spot, derivatives, and fiat transactions in US dollars and UAE dirhams. They consider Dubai an important regional hub due to its comprehensive and timely regulations. Other crypto exchanges, like Coinbase and Binance, are also exploring global options following legal actions in the US. OKX remains committed to Canada despite temporary closures, and they are considering future entry into the US market in a compliant manner.
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3. Binance has sent a cease and desist notice to a fraudulent entity called Binance Nigeria Limited
This action was taken after the Nigerian Securities and Exchange Commission declared the entity illegal in the country. Binance's CEO, Changpeng Zhao, made the announcement on Twitter. Binance clarified that the entity mentioned in the SEC circular is not affiliated with their company. They intend to seek clarification from the Nigerian SEC and cooperate with them.
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4. The crypto industry was ‘built around noncompliance’, leading to recent enforcement actions by the SEC
The director of the United States Securities and Exchange Commission (SEC) division of enforcement, Gurbir Grewal, made these comments at an event in New York, where he discussed the SEC's approach to regulating the crypto space. The SEC has been at odds with Coinbase and other exchanges, and the outcome of their legal battles could have significant implications for the crypto industry in the US. Lawmakers are scheduled to discuss oversight of the SEC in a hearing on June 22.
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5. Binance is leaving the Netherlands after failing to obtain a license to operate as a virtual asset service provider
The termination of services is immediate, and existing Dutch customers can only withdraw their assets from the platform starting from July 17. Binance explored alternative options to comply with local regulations but found no viable path to registration. The exchange has been fined over $3 million for operating without a license in the Netherlands. The departure from the Dutch market follows Binance's exit plans from Cyprus as it focuses on complying with new regulations and the larger EU market.
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