Binance activities face ban in Cayman Islands

Binance activities

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TL;DR Breakdown

• Cayman Islands regulators target Binance.com, Binance Holding, and Binance Group.
• Binance activities are investigated for not complying with the Cayman Islands laws.

The Cayman Islands supervisory authority, CIMA, clarifies that the most used crypto platform in the world, Binance, is investigated. This comes after the regulatory agency said that Binance might not trade in its jurisdiction. The ban also applies to entities subscribed to Binance, such as Binance Group and Binance Holdings.

The statement reveals that CIMA has a thorough investigation into Binance activities and Binance holdings. However, the regulator limited itself to accusing Binance of some illegal act until it has irrefutable evidence. This is not the first time the crypto platform has been investigated; days ago, the UK authorities prohibited it from working in the region.

Binance defends itself against CIMA

Binance activities

Following the opening of an investigation into Binance activities in the Cayman Islands, the platform gave its opinion. A spokesperson for Binance.com opined that the crypto platform is not centralized and does not operate from the Cayman Islands. Even the spokesperson dared to say that the accusations were blatant and based on lies.

But Binance confessed that it has agencies incorporated within the Cayman Islands laws. But he suggests that he will clarify any doubts about the Binance activities.

Binance agencies in the Cayman Islands serve other goals that move away from crypto. CIMA’s investigation against Binance is motivated by recent UK bans. But Binance.com was banned in China and Japan, where crypto regulations are sharpening.

Cayman Islands government will accept Binance activities under certain conditions

CIMA, Cayman Islands official regulator, explained Binance activities and their incorporation under its jurisdiction. First, the cryptographic platform must have a virtual assets law or service providers. If not, Binance.com must be a regulated company that CIMA gave a VASPA exemption.

According to some information sources, the platform should have been registered by the end of January 2021. Binance also had to go through the licensing and prudential supervision phase by the end of June.

But the investigation into Binance activities comes after Singapore announced Binance’s license application. Everything indicates that Binance wants to migrate its operations from the Cayman Islands to Singapore because it is a tax haven. However, the crypto platform must solve all its problems in the region before retiring.

Binance.com is the most used cryptocurrency buying and selling platform in the United States and part of the world. This website focuses on trading crypto-assets and allows fans to have their first tokens. Binance has been charged with money laundering and promoting organized crime.

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Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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