CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Hong Kong and Lithuanian regulators hit out at Binance

By Aaron Woolner

03:06, 19 July 2021

Binance app on smartphone

Lithuania’s central bank and Hong Kong’s securities regulator were the latest financial supervisors to say that digital exchange Binance is offering services in their jurisdictions without a licence. 

On Friday, Hong Kong’s Securities and Exchange Commission put out a “warning statement” about Binance offering stock tokens – virtual assets supposedly backed by listed stocks – in the city. 

“The Securities and Futures Commission (SFC) is aware that Binance has offered trading services in stock tokens (Stock Tokens) in a number of jurisdictions and is concerned that these services may also be offered to Hong Kong investors. The SFC wishes to make it clear that no entity in the Binance group is licensed or registered to conduct ‘regulated activity’ in Hong Kong,” the statement read.

“Criminal sanctions”

On Saturday, The Bank of Lithuania (BOL) put out a statement saying that it had warned Binance over its provision of unlicensed investment services in the EU member state. It added that crypto-asset related services are not regulated or supervised in the country and therefore consumers risk losing all their investments.

In contrast to the BOL’s warning and request that Binance ensures its public statements are not misleading, the SEC took a harsh stand and said that stock tokens are securities which required a licence to market in Hong Kong, and conducting such business without official approval is a criminal offence. 

ETH/USD

3,408.65 Price
+10.140% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

BTC/USD

99,057.85 Price
+4.700% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Gold

2,690.13 Price
+1.450% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee 0.0092%
Overnight fee time 22:00 (UTC)
Spread 0.30

XRP/USD

1.41 Price
+26.500% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

“Any person who contravenes a relevant provision may be prosecuted and, if convicted, subject to criminal sanctions,” said the SEC’s statement. 

What is your sentiment on BTC/USD?

99057.85
Bullish
or
Bearish
Vote to see Traders sentiment!

Troubles across borders  

Thailand’s Securities and Exchange Commission also recently raised the spectre of criminal proceedings against Binance. On 2 July the regulator said that it filed a complaint with the Economic Crime Suppression Division of the Royal Thai Police against Binance for conducting business in the Kingdom without a licence.  

Regulators in the UK, Japan and the Cayman Islands have all recently warned that Binance was operating in their jurisdictions without a licence, and the EU payments network has suspended deposits to the digital exchange. 

Binance is the largest bitcoin exchange globally by volume, according to data from CryptoCompare. 

Trade Bitcoin to US Dollar – BTC/USD CFD

1m
5m
15m
30m
1H
4H
1D
1W

Read more: Crypto derivatives volumes outstrip spot trades in June

 

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading