Binance native Token BNB under Investigation by U.S SEC
June 7, 2022 5:53 AM
The U.S Security and Exchange Commission (SEC) has opened an investigation into Binance native token (BNB).
According to a Bloomberg report, the regulators are already looking into Binance initial coin offering (ICO) whether it should have been registered with the SEC as a security or not.
Binance, the largest crypto exchange by trade volume made its initial coin offering (ICO) in 2017, which has just triggered the U.S Security and Exchange Commission (SEC) to start examining if its ICO was an unregistered security offering that should have been under the SEC's regulatory framework.
However, not wanting to speak about the latest SEC's investigation an official representative of Binance told CoinDesk via mail stating:
"As the crypto space has grown at a rapid pace, we have been working very diligently to educate and assist law enforcement and regulators in the U.S. and globally, while also adhering to new guidelines. We will continue to meet all requirements set by regulators."
Binance is currently being investigated by various commissions in the U.S. namely Justice Department (DOJ), the Commodity Futures Trading Commission (CFTC) and the Internal Revenue Service. The world’s biggest crypto exchange Binance says it’s not based in any one country.
The recent report has had a slight negative effect on the price of BNB as it went down by 4% just after the news broke out.
Meanwhile, the report also states that one of the SEC’s aim in the investigation is on Binance.US and inside trading looking into if its fully independent of the global exchange and whether employees may have been involved in insider trading.