Changpeng Zhao-led cryptocurrency exchange, Binance, has been making the rounds as regulators from several countries have been calling out the platform for operating without a proper license. While an array of regulators have been ousting the exchange out of their region, Cayman Islands seemed to be the latest one to join the list.
Since the demand for crypto has been surging, regulators across the globe have been taking a keener interest in the industry. Registration of crypto platforms with the respective financial regulator of a particular region has become mandatory. Binance has caught the eye of several regulators over the last couple of weeks. Regulators from Japan, UK, Ontario, Singapore, and several other regions have been issuing notices against the exchange.
As the crypto exchange tries to figure out how to deal with this, another regulator from the Cayman Islands issued a public statement noting that the Binance Group and Binance Holdings Limited weren’t subject to any sort of regulatory oversight by the region’s financial regulator.
Binance loses balance as regulators come in strong
In a recent statement, the Cayman Islands Monetary Authority [CIMA] pointed out that CZ’s crypto exchange was operating in the region without acquiring a license or registering with the regulator.
This further has put the crypto exchange under the purview of the regulator and is also being investigated. Elaborating on the laws that digital asset platforms are required to comply with, the post read,
“Any company incorporated under the Cayman Islands Companies Act, 2020 or otherwise established or registered in the Cayman Islands that provides virtual asset services or custodian services as a business or in the course of business, in or from within the Islands must either be: (i) registered or licensed in accordance with the Virtual Asset (Service Providers) Act, 2020 (“VASPA”); or (ii) an existing regulated entity that has been granted a waiver by the Authority under the VASPA.”