SEC Actions in US May Affect Binance in Other Regions, Hong Kong Lawyer Says

The crackdown initiated by the U.S. Securities and Exchange Commission (SEC) whitethorn impact Binance successful different regions and its licence exertion successful Hong Kong, according to a crypto-compliance lawyer. The adept believes the regulator wants the largest integer plus speech to permission the United States.

U.S. SEC Crackdown connected Binance Is Different, Legal Expert Says

“SEC’s cognition towards Binance is antithetic from USDT,” Hong Kong-licensed lawyer Gilbert Ng has been quoted arsenic saying by Chinese crypto blogger and writer Colin Wu, besides known by his Twitter grip ‘Wu Blockchain.’

The compliance specializer is convinced that the U.S. securities regulator wants “to necessitate Binance to permission the United States completely.” This, Ng says, whitethorn impact the coin trading level successful different regions and its licence exertion successful Hong Kong.

Hong Kong licensed lawyer Gilbert NG explained the interaction of the US SEC’s actions connected HK

1. SEC’s cognition towards Binance is antithetic from USDT. The cognition is to necessitate Binance to permission the United States completely, which whitethorn impact Binance successful different regions (For example,…

— Wu Blockchain (@WuBlockchain) June 7, 2023

This week, the SEC sued Binance, the world’s largest crypto speech by trading volume, and sought tribunal support to frost crypto assets controlled by its U.S. subsidiary. It claims that respective of the tokens listed connected Binance are unregistered securities.

The SEC besides accuses Binance of violating registration-related provisions of U.S. securities laws with the unregistered connection and merchantability of its ain crypto assets, including the BNB token and the Binance USD (BUSD) stablecoin. Unlike large stablecoins similar tether (USDT), BUSD offers holders immoderate advantages erstwhile utilizing the Binance platform.

Gilbert Ng besides pointed retired that the U.S. does not person laws and regulations connected cryptocurrencies portion it needs to enforce the existing legislation. This creates uncertainty successful presumption of supervision portion Hong Kong already has a wide framework, helium explained according to Wu Blockchain’s tweets connected Wednesday.

What’s more, Hong Kong has a antithetic explanation of securities, the lawyer noted. Some coins whitethorn beryllium deemed information tokens successful the United States, but not successful Hong Kong. Currently, Hong Kong allows lone nonrecreational investors to acquisition information tokens.

On June 1, authorities successful China’s peculiar administrative portion started accepting licence applications from virtual plus providers specified arsenic crypto exchanges. The licenses volition let them to supply services to retail investors successful Hong Kong, including trading of cryptocurrencies similar bitcoin and ether.

Do you deliberation the SEC crackdown successful the U.S. volition power the regulatory situation successful different jurisdictions? Share your thoughts connected the taxable successful the comments conception below.