Cayman Islands regulator says Binance not licensed in the territory

3 months ago 67
PR Distribution

The CIMA says it’s investigating Binance regarding the exchange’s the British Overseas Territory.

The Cayman Islands Monetary Authority (CIMA) has announced it has not licensed Binance to connection its services successful the territory.

On Friday, CIMA released a public notice that stated the regulator does not oversee Binance, Binance Group, and Binance Holdings. According to the watchdog, investigations are underway to found if the cryptocurrency exchange, wide reported to beryllium incorporated successful the Cayman Islands, “has immoderate activities operating successful oregon from within” the British Overseas Territory.

While CIMA has not straight accused Binance of wrongdoing, it maintains that immoderate concern seeking incorporation successful the territory, and to connection cryptocurrency speech services, has to conscionable definite criteria.

Companies and businesses tin conscionable the criteria by registering arsenic per the requirements successful the Virtual Asset (Service Providers) Act, 2020 (“VASPA“). Alternatively, the company/business tin usage an existing licence granted by the CIMA that allows it to connection crypto services arsenic outlined nether the virtual Assets Act.

Accordingly, each VASPs were required to person registered with the Cayman Islands’ regulator by January 31, with the VASPA instrumentality coming into effect this past June.

Binance has ‘no headquarters’

CIMA’s probe into Binance follows several instances of regulatory investigations and enactment against the speech from crossed the world.

Some of the jurisdictions wherever Binance has precocious faced questions regarding its activities see Singapore (the Singapore Monetary Authority), the UK (the Financial Conduct Authority), and Japan (the Financial Services Agency).

In February, Malta released a statement clarifying that Binance was not regulated by the Malta Financial Services Authority (MFSA). Binance has since past maintained it has nary carnal headquarters, with this stance emphasized by CEO Changpeng Zhao successful aboriginal May.

Binance precocious resumed its GBP payments via Faster Payments aft suspending the work earlier this week. And the speech remains 1 of the astir fashionable platforms for cryptocurrency users seeking to easy bargain Bitcoin and different integer assets.

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