Binance, a popular cryptocurrency exchange, is facing a new class-action lawsuit in Canada. The plaintiffs claim that the company violated local securities laws by selling crypto derivative products to retail investors without proper registration. The lawsuit seeks damages and the cancellation of unlawful derivatives trades. According to the plaintiffs, thousands of Canadian users invested in Binance’s cryptocurrency derivatives products.
In the Philippines, the Securities and Exchange Commission (SEC) has ordered Google and Apple to remove the Binance app from their app stores for users in the country. The SEC chair, Emilio Aquino, stated that selling unregistered securities and operating as an unregistered broker goes against the country’s securities regulations. Aquino believes that removing Binance from digital app marketplaces will help prevent the illegal activities of the company from further proliferating in the country, which could have detrimental effects on the local economy.
Meanwhile, Binance founder Changpeng “CZ” Zhao is facing a 36-month prison sentence after pleading guilty to money laundering violations in the United States. Prosecutors argue that the magnitude of Zhao’s violation of US law warrants a sentence above the recommended guidelines. Along with the prison sentence, Zhao has also agreed to pay a $50 million fine.
In the European Union, new regulations have been enacted to combat money laundering in the cryptocurrency industry. The European Parliament has approved laws that require cryptocurrency companies to implement formal due diligence obligations and identity checks for customers. Additionally, these companies must report any suspicious activities to the authorities. The new legislation will affect crypto asset service providers, including centralized crypto exchanges, under the Markets in Crypto-Assets (MiCA) regulation, as well as other entities such as gambling services.
The United States Securities and Exchange Commission (SEC) is reviewing new guidelines for trading options on Bitcoin exchange-traded products (ETPs). The SEC is seeking to understand how listing Bitcoin options could impact the overall market, particularly during times of stress. The review will also assess whether current surveillance and enforcement mechanisms are adequate for handling the unique aspects of Bitcoin options. Previous comments on the proposed rule change highlighted the potential increase in liquidity and market efficiency that options on Bitcoin ETPs could bring.
In Hong Kong, the upcoming launch of spot Bitcoin and Ether exchange-traded funds (ETFs) will not be accessible to investors in mainland China. Despite having close ties to mainland China, the three Chinese asset managers involved in the ETFs will not be able to provide Bitcoin or Ether exposure to investors in that jurisdiction. This comes after Hong Kong’s approval of spot BTC and ETH ETFs.