The latest Securities and Exchange Commission (SEC) investigation of Binance has sparked a series of reactions from European watchdogs.
According to the latest Protos reports, the SEC has been diligently looking for details regarding Binance’s operations from various European authorities for some time.
While some nations have already responded to the SEC’s investigation by taking action, others are still analysing the specifics of the matter and have not yet complied with the SEC’s disclosure requests.
The news was released just after the business disclosed that it has halted providing services in the Netherlands and withdrawn its Virtual Asset Service Providers (VASP) registration in Cyprus due to an absence of the necessary licensing.
These choices have been made as Binance gears up for the Market in Crypto Assets (MiCA) regulations, which will tighten regulations on cryptocurrency exchanges and service providers in the European Union (EU).
According to reports, Binance’s operations have been impacted by the vast stacking and distribution of information across numerous nations. Similar to FTX, Binance is the largest cryptocurrency exchange in the world and has a large number of businesses around Europe.
Surprisingly, Binance has been granted permission to run a cryptocurrency exchange in a few European nations. For instance, it has obtained licences in France and Cyprus, enabling it to provide its services to clients in those nations.
Moreover, MoonPay, a division of Binance, operates in Spain and offers cryptocurrency-related payment services. In addition, it has been claimed that Binance has registered organisations or had them formed in other European nations like the UK, Ireland and Malta.
Some of the Binance-affiliated enterprises have announced very minor revenue tranches, but others have revealed substantially greater revenue estimates, amounting to hundreds of millions of Euros annually.
The complex structure and opacity of Binance’s operations were also affected by the existence of loans made to affiliated entities by Guangying Chen, a person connected to the firm.
Although such lending agreements between a corporation and its shareholder are not common, they can make it harder to track the movement of money and comprehend a company’s overall financial structure, which has primarily led authorities to be sceptical of the firm’s standing.
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