Binance US and Voyager Tokens hit by SEC’s Unregistered Stock Exchange Crackdown

03/04/2023 22:55 • Digital Disruptors • 91 views

According to reports, an official of the American Stock Exchange said that the staff of the agency believed that Binance US operated an unregistered stock exchange in the United States. The staff believed that the sale of VGX tokens by Voyager violated the federal securities law.

US SEC official: Binance US is operating an unregistered stock exchange

Analysis based on this information:

In a recent development, an official associated with the American Stock Exchange has alleged that Binance US, a popular cryptocurrency exchange, has been running an unregistered stock exchange in the United States. This statement has come as a shock to the crypto community globally as crypto exchanges continue to face regulatory challenges around the world.

The Securities and Exchange Commission (SEC), the U.S. market regulator, has been raising concerns over cryptocurrency exchanges operating illegally in the country for some time. Though no specific exchanges have been named, the SEC has been warning investors of potential dangers associated with trading on platforms that may not comply with investor protection measures laid down by regulators.

The statement of the American Stock Exchange official suggests that Binance US may be one of the exchanges under SEC review. The agency’s staff reportedly believes that Binance US has been running an unregistered stock exchange, a serious violation of federal securities laws. The allegations have not been legally tried or proven, but the SEC’s interventions in the crypto space could bring more scrutiny to crypto exchanges.

This is not all. The SEC has also accused Voyager Digital Ltd., a publicly-traded cryptocurrency trading platform that allows customers to buy and sell cryptocurrencies, of violating federal securities laws. The regulator has flagged the sale of VGX tokens by Voyager, which was reportedly carried out without proper registration, as a breach of securities law.

The allegations of the SEC against Binance US and Voyager tokens allegations may result in stricter regulations for the crypto industry. The SEC has been working to clarify the legal status of digital assets and crypto products for some time now and this development could lead to more stringent reporting requirements and oversight for crypto exchanges.

To sum up, the SEC’s latest move highlights the agency’s increasing focus on regulation in the digital asset space, and the concerns it has over the possible operation of unregistered cryptos. It also underscores the need for crypto exchanges to comply with financial laws and regulations as regulators work on solutions to create a secure legal framework for cryptocurrency trading.

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