After the UK shutdown, some investors are suing Binance, one of the largest cryptocurrency exchange platforms in the world. Here because Earthquake in the world of cryptocurrencies with the Binance platform as its epicenter. A group of Italian and international investors has taken legal action against Binance, active in cryptocurrencies, to obtain a refund of the capital invested. This is stated in a note released by the Lexia Avvocati law firm - taken up by Ansa - which received the assignment and acts in collaboration with the Swiss Blockchain Consortium. The lawsuit comes a week after the UK's financial regulator (FCA) banned transactions on Binance. "Obviously, this is only a cause, like there are many" highlights Il Sole 24 Ore. "But it also fits into the security debate in the cryptocurrency world." Meanwhile, Barclays yesterday blocked UK clients from sending funds to Binance. In addition to the UK, the platform is also facing intense regulatory scrutiny in Canada, Thailand, the Cayman Islands, Japan and the United States. All the details. THE CAUSE INTRODUCED BY INVESTORS In addition to the reimbursement of the capital invested, the investors are also asking Binance for compensation for the damages suffered "as a result of the violation of the rules on trading and offering to the public of 'futures' financial derivative instruments on cryptocurrencies". At Binance, investors also complain about anomalies in the functioning of the trading platform. WHAT IS BINANCE Binance was founded in 2017 in China by Changpeng Zhao and Yi He; it subsequently moved its headquarters to the Cayman Islands to escape the Chinese cryptocurrency squeeze, which was deemed a cause of instability for the financial system. Binance.com is a centralized online exchange that offers users a range of financial products and services, including buying and trading a wide range of digital currencies, as well as digital wallets, futures, stocks, savings accounts and even loans. It has quickly become the leading cryptocurrency spot exchange in the world thanks to its incentives, such as Binance Coin, and lower fees. As the FT points out, the group, which lacks a formal location, connects to the conventional financial market through a number of global affiliates. In Europe, affiliates have partnered with UK-based payment providers, including Checkout.com and Clear Junction, which allow hard currencies to flow to and from the platform. THE STOP FROM FCA In a note dated June 25, the FCA said Binance Markets Ltd - the subsidiary of the company that operates in the United Kingdom - cannot carry out any regulated activity in the United Kingdom without the prior written consent of the authority. Reuters explained that cryptocurrency trading is not directly regulated in the UK, but offering cryptocurrency derivatives trading services requires authorization. In addition to banning Binance from trading in the UK, the regulator had ordered its UK division to stop all forms of advertising until June 30. THE BARCLAYS DECISION But it doesn't stop there. Just yesterday Barclays notified clients of the ban on debit and credit payments to Binance. "This action has no impact on clients' ability to withdraw funds from Binance," the London-based bank said. "The decision was made following FCA's warning to consumers". UNDER INVESTIGATION IN THE UNITED STATES In addition, also in the United States, one of the group's affiliates, Binance Holdings, is being investigated by the United States Department of Justice and the tax authority, as reported in May by Bloomberg. THE WITHDRAWAL FROM CANADA On June 26, Binance announced that it would withdraw from Ontario, Canada. The move comes after the Ontario Securities Commission (OSC) accused Binance and several other cryptocurrency trading platforms of failing to comply with regulations. THE WARNING IN JAPAN Also in late June, Japan's Financial Services Agency (FSA) warned Binance for the second time in three years that it is operating in the country without a permit. THE INVESTIGATION IN THAILAND Finally, Thailand's Securities and Exchange Commission filed a criminal complaint against Binance on Friday with a division of the Royal Thai Police. The accusation is that he ran a digital asset business in the country without a license. The Cayman Islands financial regulator said the platform was not licensed to operate in the territory. Meanwhile, trading volume over the weekend of July 4 on the platform dropped about 18%, according to data from Binance-owned CoinMarketCap.com. The price dBinance Coin, linked to the exchange, fell by about 2%, while Bitcoin remained little changed on Friday.
Cryptocurrencies, all Binance's legal woes by Chiara Rossi