Digging Up the Crypto Truth

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Even though human beings have proven themselves as the smartest species this world has ever seen, the whole dynamic wouldn’t be enough to save us from our own flaws. Talk about human flaws, they have showed up on the surface time and time again throughout the history. Now, their appearances have surely taught us a fair amount, but on certain occasions, they have also caused some serious damage along the way, thus forcing us to look for a well-defined defense mechanism. We will, on our part, find the stated cover once we bring dedicated regulatory bodies into the fold. The paid off big time, as it wasted no time in making us feel safer than ever before. However, with technology and its layered nature taking over the scene, that feeling quickly dissolved into nothingness. This was because technology gave everyone a clear shot at exploiting other people’s shortcomings, and such a dynamic, like you can guess, went on to nullify our entire progress that came under regulatory stewardship. Fortunately, though, the governing forces didn’t take the setback lying down. They would deliver a fitting response over time. In fact, one recent move from SEC provides us with a clear testament of the same.

Securities and Exchange Commission of US has officially launched an investigation into the crypto-exchange, Binance. As per certain reports, the investigation revolves around a possibility that Binance might have conceived an initial coin offering for its digital token, BNB, without ever registering it with the agency. Notably enough, this is not the only SEC probe Binance is facing at the moment. Back in February 2022, the commission initiated a completely different investigation over concerns of an illegal connection between the company and two trading firms. Prior to that, authorities like the Department of Justice (DOJ), Internal Revenue Service (IRS), and Commodity Futures Trading Commission (CFTC) had launched their own inquiries into Binance for grave potential violations such as insider trading and market manipulation.

When asked for a response to the latest probe, A Binance spokesperson refused to give any concrete details. Instead, they said:

“As the industry has grown at a rapid pace, we have been working very diligently to educate and assist law enforcement and regulators in the US and internationally, while also adhering to new guidelines. We will continue to meet all requirements set by regulators,”

While the commission is mostly interested in learning about Binance’s 2017 ICO, it is also expected to study whether Binance.US, which is currently banned, is actually a separate entity from the China-based Binance or not.

Coming back to the investigation’s focal point, we don’t know what consequences are in store for Binance and BNB, if the company is found guilty, but they could impact the coin’s standing, which, at the moment, has it among the most popular digital tokens.

 

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