The Thailand-based Securities and Exchange Commission (SEC) has just filed a criminal complaint against the leading crypto exchange Binance. The main reason for this is that SEC believes Binance has been offering its services illegally. SEC also revealed about a prior warning letter that it had sent to Binance all the way back in April 5th. However, there was no follow-up response from the exchange.
The complaint was filed with the aid from the Economic Crime Suppression Division of the Royal Thai Police (ECD). The body will decided what to do next.
An official statement by SEC, disclosed this Friday, revealed that the exchange had been providing “platform services for trading or exchanging digital assets via its website by matching orders or arranging for the counterparties or providing the system or facilitating entry into an agreement or match the order for persons who wish to trade or exchange digital assets,”
This way of operating according to SEC falls into the category of unregulated activities.
Speaking in general terms, these types of violations may lead to a 2 to 5 years of imprisonment, along with a fine ranging from 200k baht to 500k baht. A daily applied fine of 10 000 baht can be imposed if Binance continues with these shady activities.
Thailand’s Digital Asset Business Emergency Decree is what draws the current regulatory framework for all crypto exchanges in the country. Without approval from them, no exchange can operate legally.
Meanwhile, the exchange was recently banned in Japan and the UK, two major crypto market zones, while the British Virgin Islands, only hours ago, will be carrying an investigation against Binance.