SEC Sues Binance & CZ: What You Need to Know
• The US Securities and Exchange Commission has filed a lawsuit against the Binance exchange and its CEO, Changpeng Zhao (CZ).
• If successful, the lawsuit could restrict access to the international version of Binance in the US.
• Traders have reacted positively to this news, with a 5% price correction being seen as a “vote of confidence” that operations will remain unaffected.
SEC Lawsuit Against Binance Exchange
The U.S. Securities and Exchange Commission (SEC) has brought a lawsuit against the Binance cryptocurrency exchange and its CEO Changpeng Zhao (CZ), alleging unlawful conduct. If successful, this could potentially restrict access to the international version of Binance for U.S.-based users, as well as introducing new restrictions on those using VPN services to bypass such bans.
Impact on North American Entities
The potential implications of this lawsuit are significant for North American entities such as Paxos and the stablecoin BUSD which use the services offered by Binance. Should CZ and Binance lose or strike a deal pleading guilty, they may have to pay fines or be forced to halt services in North America altogether.
Following news of the SEC’s lawsuit against Binance, traders reacted positively with a 5% price correction seen as a “vote of confidence” that operations will remain unaffected in other parts of the world outside North America – suggesting that even if there is some form of settlement between SEC and CZ/Binance, it would not impact significantly on their business elsewhere.
Different from Coinbase Lawsuit
The situation is different however with Coinbase who have an extensive user base in North America – meaning they can’t move their operations abroad without experiencing significant reductions in both users & volumes traded due to inherent limitations within certain jurisdictions like USA & Canada .
Restrictions on Trading Tokens Deemed Securities
Lastly, should any tokens be deemed securities by the SEC then these would not be accessible for trade by North Americans unless these trades were conducted via decentralized exchanges which provide further anonymity thus circumventing any attempts at regulation.