Binance Hit with Criminal Charge by Thai SEC

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  • The Thai SEC has reported Binance to the police for illegally operating in the country
  • The Thai SEC apparently sent Binance a letter in April but Binance failed to respond
  • Thailand has stepped up its crypto activity in recent weeks, including a framework to regulate DeFi

Binance has been hit with a criminal complaint from the Thai Securities and Exchange Commission (SEC) due to operating in the country without a license. Thailand has been beefing up its cryptocurrency regulations in recent weeks, including physical identity checks for new registrants of local cryptocurrency exchanges, and last month outlined plans to regulate DeFi platforms in the country. In the case of Binance, the Thai SEC has taken action because the exchange is not registered to operate in the country and the company ignored warning letters sent in April.

Binance Cops More Flak From Regulators

Binance has become a magnet for regulatory clampdowns this year, probably because it is recognized as the biggest cryptocurrency exchange in the world. However, it is not registered with most of the countries in which it operates, which has led to some, like the Thai SEC, taking action while others, such as the UK’s Financial Conduct Authority, have warned customers about using the Binance, saying they will not be in line for compensation if anything happens to their funds.

The Thai SEC, having apparently tried to deal with Binance and got nowhere, have now taken the matter to the police. Binance says it is working with regulators and takes compliance seriously, pointing to its recent introduction of CipherTrace Traveler to comply with FATF regulations.

CZ Set For Jail in Thailand?

Japan also took the same approach with Binance last week, saying it was operating illegally in the country, although with the Thai authorities taking things as far as a police report it’s clear they are the most aggrieved. The offence at hand, illegally trading securities, carries with it a fine and a prison sentence of up to five years, but it remains to be seen who at Binance the Thai authorities would target and how they would go about prosecuting them.