BNB, which is the native token of Binance, has caught the attention of the US Securities and Exchange Commission (SEC), which has revealed an investigation to check if its launch was legit or not. The SEC wants to make sure that in the year 2017, when the BNB token was put up for the initial coin offering (ICO), it was not an unregistered security. The BNB token is primarily used to pay a transaction fee on the Binance crypto exchange, which is also among the biggest in the world.
Reacting to this legal issue, the Binance team has revealed that it has and will even continue to adhere to the abiding rules and regulations of the nations it is operating in.
The SEC is trying to identify those ICOs that were not registered with it before even going live.
ICOs offer individuals an opportunity to invest in Web3 projects at an early stage that has the potential to offer a large number of returns after their launch.
While ICO investors could even end up reaping big rewards after the launch of the product is successful, they could just as easily fall prey to scam projects and end up losing their huge investments.
In a bid to safeguard US citizens from getting duped by crypto scammers, the SEC mandates that all the ICOs are first registered with the federal agency before even being made live.
As of now, the Binance token is undergoing an investigation.
Apart from that, the SEC will also be probing if Binance US, which is a subsidiary of Binance Global, is an integrated or separate entity in relation to its mother organization.
Binance was founded in the year 2017; it has reportedly processed INR 18257 crore in illegal transactions linked with the drugs, hacks and some other fraud activities, as per the report.
The Binance team has, moreover, refuted the claims being made by the report calling the information rife with falsehoods.
With the SEC beginning to investigate Binance operational ethics, the company is also aiming to become the most licensed crypto exchange across the globe.
The platform is also looking to onboard some of the legal personnel in the UK, Israel, Canda, Spain, Italy, Singapore, Europe, Portugal, Singapore, Hong Kong and some other regions of the Asia Pacific, Europe, Africa, Latin America and Middle East.
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