Binance, the world’s largest cryptocurrency exchange, has reached a settlement with the United States Securities and Exchange Commission (SEC). The settlement resolves an investigation into whether Binance violated securities laws by selling unregistered securities.
Under the terms of the settlement, Binance will pay a $100 million fine and agree to certain restrictions on its operations. For example, Binance will not offer trading services to U.S. customers and will not allow U.S. residents to use its platform.
Binance CEO Changpeng Zhao (CZ) said that the settlement was a “positive development” and that it would allow Binance to “focus on its core mission of providing financial services to people around the world.”
The SEC alleged that Binance sold unregistered securities in the form of initial coin offerings (ICOs). ICOs are a way for companies to raise money by selling tokens to investors. The SEC considers ICOs to be securities and requires companies to register them with the SEC before selling them.
Binance denied the SEC’s allegations and said that it did not violate any laws. However, Binance agreed to settle the case to avoid the expense and uncertainty of a protracted legal battle.
The settlement with Binance is a significant victory for the SEC. It is the first time that the SEC has brought charges against a major cryptocurrency exchange.
The settlement sends a message to other cryptocurrency exchanges that the SEC is serious about enforcing securities laws in the cryptocurrency industry.
