Unchained Unconfirmed: Why It Might Be Too Late for Binance to Avoid Regulatory Action - Ep.255
Jul 16, 2021
Christine Parker, a partner at Reed Smith specializing in regulatory issues within the crypto space, dives into the tumultuous landscape surrounding Binance's regulatory scrutiny. She discusses the various countries investigating Binance and why compliance is challenging. Christine predicts potential actions from U.S. regulators, evaluates Binance’s strategy of relocating from constraints, and explores the implications of transitioning to a DAO model. Additionally, she touches on parallels with the BitMEX case and the looming possibility of criminal charges for CEO Changpeng Zhao.
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Global Regulatory Scrutiny on Binance
- Binance faces regulatory scrutiny globally, including investigations by the CFTC, DOJ, and IRS in the U.S.
- Other countries like Japan, Italy, Thailand, the Cayman Islands, Singapore, and Poland have also issued warnings or taken action.
Binance's Jurisdictional Challenges
- The significance of these actions is that Binance has been on regulators' radar for a while.
- The lack of a clear jurisdiction for Binance has made it difficult for regulators to take effective action.
Likely Outcome of U.S. Investigations
- It's likely the reports about U.S. investigations are accurate, based on the BitMEX precedent.
- A settlement or enforcement action is expected within the next six to nine months.
