• US regulators are considering bringing fraud charges against Binance, the world’s largest crypto exchange.
• Regulators fear that the potential panic caused by such a move could lead to customers losing money.
• However, Binance has re-entered the Japanese market through its acquired subsidiary – SAKURA Exchange Bitcoin Inc.
US Regulators Consider Fraud Charges Against Binance
The US Securities and Exchanges Commission (SEC) has launched a lawsuit against the world’s largest crypto exchange, Binance, in June 2023. Now, regulators are considering bringing fraud charges against the exchange due to concerns of customers losing money in case of a bank run like that of FTX in November 2022.
Regulatory Actions Could Include Fines and Non-Prosecution Agreements
Regulatory actions may include fines and non-prosecution agreements instead of bringing fraud charges due to fears of customer losses. At press time, BNB was trading at $240.16 with a market cap of over $36 billion after seeing a 1% decline in price over the past hour and 2% over the past 24 hours.
Binance Re-Enters Japanese Market Through Acquired Subsidiary
In light of this situation, Binance has re-entered the Japanese market through its acquired subsidiary – SAKURA Exchange Bitcoin Inc., offering spot trading and “Earn” services with support for 32 tokens including BTC, ETH, ALGO, MATIC, XLM, XRP and more. The relaunch will be supervised by Japan’s Financial Services Agency (FSA).
Binance Launches Clean Node Protocol for Increased Security & Transparency
To further ensure increased security and transparency on its platform for all users worldwide, Binance has also launched a new protocol called “Clean Node” which is powered by Amazon Web Services (AWS). The protocol ensures that no “dirty nodes/endpoints” are included in any transactions taking place on its platform as an additional layer of protection from malicious actors or hackers attempting to access user data or funds.
Conclusion
Binance remains one of the world’s largest crypto exchanges despite increasing scrutiny from US regulators regarding potential fraud charges and liquidity issues experienced by other exchanges within the industry such as FTX last year. To ensure additional security measures amidst these challenges, it has launched a new protocol called Clean Node which is powered by AWS while also re-entering the Japanese market through an acquired subsidiary for spot trading services with support for 32 tokens
