Still On The Hot Seat: Binance Faces Increased Regulatory Scrutiny Worldwide

Still On The Hot Seat: Binance Faces Increased Regulatory Scrutiny Worldwide

The Cayman Islands Monetary Authority (CIMA) has said that Binance and its affiliated companies are not authorized to operate or offer cryptocurrency exchange services from or within its territories.

In its official announcement on Friday, CIMA informed the public that contrary to recent assumptions, neither Binance, Binance Group nor Binance Holdings Limited is subject to any regulatory oversight by the watchdog. Therefore, any crypto-related services offered by the exchange are currently being illegally piloted into the country.

“The Cayman Islands Monetary Authority wishes to inform the public that Binance, the Binance Group and Binance Holdings Limited are not registered, licensed, regulated or otherwise authorised by the Authority to operate crypto-currency exchange from or within the Cayman Islands.”

CIMA to Investigate Binance

According to CIMA, Malta-based Binance is now under investigation to determine whether it is offering any unauthorized services that fall under the watchdog’s regulatory oversight.

“Following recent press reports that have referred to Binance the Binance Group and Binance Holdings Limited as being a crypto-currency company operating an exchange based in the Cayman Islands, the Authority reiterates that (the three entities) are not subject to any regulatory oversight by the Authority.”


In response to the CIMA’s announcement, a Binance Spokesperson said that contrary to what some media articles have said before, does not run a crypto-currency exchange out of the Cayman Islands.

“We do however have entities incorporated under the laws of the Cayman Islands performing activities that are permitted by law and not related to operating crypto-exchange trading activities. We will work with regulators to address any questions they may have.”

Binance Vs. Regulatory Authorities

CIMA is the latest financial regulator to put Binance on the spot for allegedly offering unregulated cryptocurrency exchange services. Despite being the largest crypto exchange in terms of liquidity, trading volume, and a number of crypto assets on offer, Binance has also acquired a reputation as being a grey-area operator.

The UK’s Financial Conduct Authority (FCA) recently said that Binance’s Subsidiary in the UK is also illegally piloting its crypto-trading services inside its jurisdictions. In the US, where customers account for around 30% of the exchange’s total customers, Binance is unregulated but operates a separate site for its American traders, Binance US.

In May, the Justice Department and the Internal Revenue Service (IRS) launched an investigation against Binance due to alleged illicit activity involving money laundering and tax offenses.

Additionally, In April, the Securities and Exchange Commission (SEC) issued a warning to Thai investors notifying them that Binance is not a licensed digital asset operator under the Digital Asset Business Decree in Thailand.