The Thai SEC and the Cayman Islands regulator are taking action against Binance

Binance, the leading cryptocurrency exchange by trading volume, continues to be subject to regulatory scrutiny in certain countries.

The Thai Securities and Exchange Commission (SEC) and the Cayman Islands Monetary Authority (CIMA) are the latest financial regulators to announce regulatory action against Binance.

The Thai SEC announced on Friday that it has filed a criminal complaint against Binance, initiated a criminal case and an investigation for allegedly conducting an unlicensed digital asset business. The agency said Binance provided cryptocurrency trading services through its website by “coordinating orders or arranging partners or providing systems or facilitating the conclusion of agreements.”

“Binance has called on the Thai public and investors to use their services, either via their website or Facebook page: Binance Thai Community,” said the SEC. The regulator mentioned that it had previously sent a warning letter to Binance in April asking the exchange to submit a written response, but the crypto exchange was unable to send a response within a short period of time.

“Only vendors who have obtained the appropriate legal license are allowed to provide services related to digital asset trading, exchange, custody, transfer, payout or any other transaction. The agency found that violations can be punished according to the legal regulations.

The Thai SEC announcement comes just a day after Cayman’s CIMA officially announced on Thursday that institutions like Binance, Binance Group and Binance Holdings are “not registered, licensed, regulated or authorized” to conduct a cryptocurrency exchange “from or within the Cayman “Operate Islands”. The supervisory authority emphasized that none of the listed companies is subject to government control.

CIMA states that the regulator will also investigate any other Binance affiliate that has activities in or from the Cayman Islands.

The agency added that any crypto-related company incorporated or incorporated in the Cayman Islands under the Cayman Islands Companies Act 2020 is operated by a country’s virtual asset service provider or an existing regulated entity that the agency has waived , must be registered.

A Binance spokesman told Cointelegraph that the crypto exchange “has always been decentralized”. The representative denied reports on Binance’s crypto activities in the Cayman Islands, adding:

“However, we have organizations established under the laws of the Cayman Islands that conduct activities that are permitted by law and are unrelated to the operation of cryptocurrency exchange trading activities.”

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As a major global exchange, Binance has struggled to find the right authority to run its crypto business. Founded in China before the state enforced a ban on crypto trading in 2017, Binance has moved overseas and is scheduled to have its headquarters in the Cayman Islands and the Seychelles from February 2020.

Binance is known for having multiple institutions around the world and is said to have previously been headquartered in Malta. Last February, the Maltese Financial Services Authority stated that it had never approved Binance to operate in the country.

The latest news comes amid a renewed crackdown on Binance’s activity around the world, with governments such as the UK, Japan, Canada and the US closely monitoring the activities of the exchange. The Singapore Monetary Authority plans to review Binance Asia Services’ license application as its parent company undergoes global regulatory scrutiny, according to a report by Bloomberg Thursday.