Sunday, December 3, 2023

Why is the SEC questioning BNC?

According to the latest news reports, Binance’s CEO Changpeng Zhao aka CZ says the US SEC has been asking a lot of questions. The SEC is looking for information about the company’s exchange token, but no subpoenas have been issued yet. News of the SEC’s investigation of Binance was made public earlier in the month.

Apparently, the SEC is investigating whether the BNB token is an unregistered security. CZ says that it is quite common for the SEC to ask Binance questions about the various products the company offers. He also said that Binance is in regular touch with the SEC and other authorities. Per available information, Binance’s token is the 5th largest crypto token in the world. The SEC has several cases over offerings of initial coins by the company.

Sources say that authorities are looking at the firm’s founding as well as the token. Investigators are looking closely at the initial offering and can get testimony from investors under the condition of anonymity. This is turning out to a problem for Binance as it is facing several investigations, and not just by the SEC. Binance does not have a domicile in any specific country and has affiliate offices around the globe. This is proving to be an issue as American authorities try to curtail crypto industry activities.

The SEC has refused to comment on the probe, and this is a known policy. Per information available from other sources, the Commodities Futures Trading Commision, the Justice Department and even the IRS are investigating Binance. All of these probes are separate investigations and not joint ones. CZ says that he has a regular bank account but doesn’t always use it.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

Most Popular