• Thailand SEC is investigating Binance for operating a digital business without a license.
  • The crypto business is accused of conducting its business in the country illegally.
  • Binance could face jail terms and pay fines and penalties.

Binance is facing a criminal inquiry launched by Thailand’s Securities and Exchange Commission (SEC). The regulator issued a stern warning on Friday, July 2, accusing Binance of conducting its crypto business illegally in the nation. In other words, the agency accuses the global crypto company of operating in the nation without having an approved license.

Binance executives at major risk

Thailand’s SEC stated that Binance was using its online platform and social media channels to solicit Thai citizens into cryptocurrency trading activities via the company’s website. The regulator termed Binance’s involvement as criminal activities and therefore is liable for arrest and prosecution.

On April 5, the agency sent an official letter to the crypto company demanding Binance to respond through a written explanation. However, the crypto firm did not give a response within a stipulated period.

The investigation launched by Thailand’s SEC has occurred when the crypto exchange and its subsidiaries are facing regulatory scrutiny or have obtained related warnings from authorities around the globe, including nations like Singapore, Japan, the United Kingdom, the United States, and the Cayman Islands. 

Yesterday, the Monetary Authority of Singapore stated that it plans to conduct a follow-up to review the business license given to Binance affiliates operating in the country. The move by Singapore’s financial regulatory authority comes after Binance Global is encountering investigations from various regulators across the globe.

Binance unit in Singapore has been given a specific period of time to operate its business in the country while the regulator conducts an investigation to assess its license to offer crypto trading services. An official from the agency said that several other firms are also undergoing such a review while continuing to operate their businesses.

The crypto industry is facing uncertainty due to a crackdown being imposed by various regulators from the United States to China because of the rising concerns of the use of cryptocurrencies to commit fraudulent activities and money laundering. One of the most profound actions renowned today is the fact that Binance was prohibited from conducting crypto business in the United Kingdom. 

The Thai agency’s actions against Binance seem to be more serious as it is not a mere warning but is a summon of a criminal proceeding initiated towards the crypto firm and launched by the national police. This shows that the investigation has started and, therefore, settlement of the matter could be executed in the court to engage judges to determine the prosecution charges against Binance.

Based on the regulator’s statement, Binance engaged in violation of the country’s cryptocurrency regulations enshrined by law. Therefore, the company executives could face prosecution involving a jail term of two up to five years and paying a fine of $6,000 to $15,000, including paying a penalty of $310 daily as the trial period continues.

Binance has not given its response to media officials who have requested the firm to comment on the matter. In the past, the crypto exchange said that it takes compliance commitment with seriousness and embraces collaboration when dealing with regulatory authorities.

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