Coinbase takes advantage of Binance’s regulatory situation in a controversial tweet
2 min readThe US cryptocurrency exchange Coinbase has just cast some shadow on Binance, its biggest competitor, in a controversial tweet.
Coinbase takes advantage of the Binance regulatory crisis in Tweet
The American crypto exchange proudly stated:
“There’s a lot of news coming from the UK this week and it has made us think about a few things we’re proud of… We’ve never been hacked, we’ve never had to close down, 56 million users worldwide, it’s the safest place for your cryptocurrency. More information about Coinbase in the UK… ”
Tweet provoked a wave of reactions and, for example, the pseudonymous developer of BTC Cobra challenged the exchange as not to tempt fate.
Coincidentally, the tweet comes after the Financial Ethics Authority (FCA) banned the British Binance division from conducting any regulated activities in the country. Binance – which suffered a hack in 2019 stealing 7,000 BTC – now faces tight regulatory scrutiny, with regulators from Britain, Canada, Japan and the Cayman Islands all intervening against the stock market in the same week.
Regulation pressure on Binance
On July 2, the Thai Securities and Exchange Commission (SEC) filed a criminal complaint against the exchange, stating that it operated in the country without a license.
The Thai SEC stated in a statement that on April 5 it sent a warning letter to Binance about the nature of its business in the country and asked for a written response. However, the company “did not reply within the deadline.”
Regulators in Japan and Ontario have warned residents to stop using the platform
The announcement of the regulators in the Cayman Islands that it would investigate Binance’s business also added to the pressure, stating that it was not authorized to operate a cryptocurrency exchange “from or within the Cayman Islands”. Although Binance Holdings Ltd. is registered in the Cayman Islands, its parent company status does not mean that it must fall under the jurisdiction of the Office.
The Singapore Tax Office (LAG) said it plans to address the concerns of various regulators with its own investigation into Binance’s local subsidiary, Binance Asia Services Pte.
Binance did not officially comment on the latest regulatory announcements, CEO and founder of Changpeng “CZ” Zhao tweeted only the following report:
“For those who follow and support us, you know that we do not engage in debates and struggles, we focus and we will focus on solving problems. As always, thank you for your trust and support! We will continue to grow together.”
