The thick dark regulatory clouds are not dispersing and remain ironclad over the head of Binance. It has been subjected to various government inquiries and investigations in the past, and yet once again, Binance, the most elegant crypto exchange out there, finds itself entrenched into the crosshairs of regulatory authorities over potential insider trading.
There have been a few loopholes and laziness evident from Binance’s behavior, and it has lost for that the respect of the regulatory bodies and has endured imminent exclusion from various countries regarding its crypto services. In a recent investigation, it is being imposed that the Binance’s staff or traders were involved in making a profit from the customers without consulting them, or in other words taking advantage of the client’s trading.
Not only is this wrong but also unethical; if these charges are indeed proven correct in the long run, then Binance is going to lose all of the business and credibility it has built with its clients over the years. Currently, the only thing that is making this case significant is an anonymous source; according to the US officials from Commodity Futures Trading Commission, there is a possibility that Binance was involved with insider trading and market manipulation.
Binance Has Increased Its Regulatory Team
The investigation team has been calling various witnesses who are part of this whole transition; if anyone testifies against Binance or proves the wrongdoings that have been happening and were indeed in the notice of the exchange, then it would be the final blow for this enigmatic crypto platform before it blows out.
It can’t be said that Binance was on the right with this whole thing because, in the recent past, Binance has taken a new approach to accept regulatory compliance by introducing mandatory KYC for its users. It indicates that the crypto exchange was negligent of these regulatory duties before investigators and regulators got the best of it and are only taking notice now. No one knows how this is going to play out, but in the long run, Binance has definitely made some mistakes and needs to get it together before it’s too late.