The
Financial Services Commission (FSC) of South Korea has decided to track the
ongoing legal action against Binance closely. According to the local magazine
NewsPim, it may cause a delay in the approval of the cryptocurrency exchange’s
acquisition of Gopax, a prominent South Korean trading platform . The FSC had
previously postponed this approval in April due to an investigation into
potential money laundering activities involving Binance.
The present
situation has been further complicated as the US Securities and Exchange
Commission (SEC) has initiated legal proceedings against Binance and its CEO,
Changpeng Zhao, on charges of violating securities laws. Furthermore, the SEC
has applied for the seizure of assets, raising doubts over the completion of
the acquisition.
According
to recent reports from this week, the SEC filed a lawsuit on 5 June against
Binance. The crypto exchange and its CEO were accused of misappropriating
customer assets. The charges assert that Binance inflated crypto trading
volumes and secretly transferred customer assets to a different crypto-related
firm to invest in currencies traded on its own platform.
In addition
to the SEC, Binance has faced legal challenges from other US regulatory bodies.
In March, the US Commodity Futures Trading Commission (CFTC) sued Binance for
evading registration obligations and breaching rules related to trading and
derivatives.
