Home Community Insights Coinbase and Binance Regulatory Tussle

Coinbase and Binance Regulatory Tussle

Coinbase and Binance Regulatory Tussle

Coinbase, the leading cryptocurrency exchange in the US, has filed a new brief in its ongoing lawsuit with the Securities and Exchange Commission (SEC), accusing the regulator of overstepping its authority and violating due process.

The brief, which was submitted on October 27, 2023, is a response to the SEC’s motion to dismiss Coinbase’s complaint, which was filed in September 2023. The complaint challenged the SEC’s decision to threaten Coinbase with legal action if it launched a lending program that would allow users to earn interest on their crypto holdings.

Coinbase argues that the SEC’s decision was arbitrary and capricious, and that it violated the Administrative Procedure Act (APA), which governs how federal agencies make rules and regulations. Coinbase claims that the SEC failed to provide any clear guidance on how it determines whether a crypto product is a security or not, and that it applied a different standard to Coinbase than to other platforms that offer similar products.

Tekedia Mini-MBA (Feb 5 – May 4, 2024) has started; registration continues here.

Tekedia AI in Business Masterclass opens registrations here.

Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.

Coinbase also asserts that the SEC violated its constitutional rights by depriving it of due process and equal protection under the law. Coinbase says that the SEC did not give it a fair opportunity to respond to its allegations, and that it discriminated against Coinbase by singling it out for enforcement action without any rational basis.

Coinbase concludes its brief by asking the court to deny the SEC’s motion to dismiss, and to grant Coinbase’s motion for a preliminary injunction, which would prevent the SEC from taking any action against Coinbase until the case is resolved.

Coinbase’s lawsuit is one of the most high-profile legal battles in the crypto industry, as it could have significant implications for the future of crypto regulation in the US. The case is being closely watched by other crypto companies, investors, and lawmakers, who are eager to see how the court will rule on the complex and controversial issues involved.

Binance has set up trading platform in Hong Kong to apply for a license.

Binance, one of the world’s largest cryptocurrency exchanges, has announced that it has established a trading platform in Hong Kong to apply for a license under the new regulatory framework. The move is part of Binance’s efforts to comply with the local laws and regulations, and to enhance its global presence and legitimacy.

Hong Kong has recently introduced a new licensing regime for crypto exchanges, which requires them to obtain approval from the Securities and Futures Commission (SFC) before operating in the city. The SFC has stated that it will only grant licenses to platforms that offer trading services for professional investors, and that comply with anti-money laundering and counter-terrorism financing rules.

Binance’s Hong Kong platform, which is expected to launch in the first quarter of 2024, will cater to professional investors only, and will offer a range of crypto products, including spot, futures, options, and margin trading. Binance said that it will also implement robust security measures, risk management systems, and governance structures to ensure the safety and integrity of its platform.

Binance’s CEO, Changpeng Zhao, said that the Hong Kong platform is a strategic step for Binance to expand its global footprint and to serve the needs of its customers in different markets. He added that Binance is committed to working with regulators and industry partners to foster innovation and growth in the crypto space.

“We are excited to launch our Hong Kong platform, which will provide a regulated and compliant environment for crypto trading in one of the world’s leading financial hubs. We believe that Hong Kong has a lot of potential to become a major crypto market, and we look forward to contributing to its development and prosperity,” Zhao said.

Binance’s Hong Kong platform is the latest addition to its growing network of regional platforms, which include Binance US, Binance Singapore, Binance UK, Binance Australia, and Binance Jersey. Binance said that it will continue to explore new opportunities and partnerships to offer more localized and tailored services to its users around the world.

No posts to display

Post Comment

Please enter your comment!
Please enter your name here