Regulators at the Cayman Islands Monetary Authority (CIMA) have stated that the world’s largest crypto-exchange, Binance, is not authorized to operate as a cryptocurrency exchange in the territory.
Yesterday, in a press release, CIMA published its truth about the permissions not being granted to the crypto trading giant.
“The Cayman Islands Monetary Authority (the “Authority”) wishes to inform the public that Binance, the Binance Group and Binance Holdings Limited are not registered, licensed, regulated or otherwise authorised by the Authority to operate a crypto-currency exchange from or within the Cayman Islands”.
The issue of CIMA regulators stems from the fact that a few days ago, the FCA, the agency that oversees financial markets in the UK, also issued a ban against Binance Markets Limited.
Specifically, the FCA stated as follows:
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group)”.
Raising the issue about the regulated headquarters of the crypto-exchange giant, here is where the press seems to have singled out the Cayman Islands. And, in fact, the statement aims to answer this very dilemma:
“Following recent press reports that have referred to Binance, the Binance Group and Binance Holdings Limited as being a crypto-currency company operating an exchange based in the Cayman Islands, the Authority reiterates that Binance, the Binance Group or Binance Holdings Limited are not subject to any regulatory oversight by the Authority”.
Cayman Islands and Binance: authorities investigate crypto-exchange activity
CIMA also said that it will set about investigating whether or not Binance is operating in the territory.
“The Authority is currently investigating whether Binance, the Binance Group, Binance Holdings Limited or any other company affiliated with this group of companies has any activities operating in or from within the Cayman Islands which may fall within the scope of the Authority’s regulatory oversight”.
A somewhat chaotic situation for Binance. In addition to the UK and Cayman Islands, Singapore’s financial regulator has also said it will proceed to supervise the activities of Binance Holdings Ltd.
Essentially, Binance is seeking a licence that would legitimize its operations in Singapore, along with cryptocurrency firms including Gemini Trust Co. LLC and Hong Kong-based Crypto.com.
In this regard, a representative of the Monetary Authority of Singapore, or MAS, responded to a Bloomberg interview yesterday, explaining that while Binance Asia Services Pte. operates in Singapore, the MAS is reviewing its application for a license to provide digital token payment services.
The MAS said it is applying “robust standards” in evaluating applications, and considers a number of factors such as the applicant’s ability to implement strong measures against illicit flows, as well as the suitability and propriety of shareholders and key holders.
In this regard, here is how the MAS representative described the situation:
“Many applicants dropped out of the race as they were unable to meet the standards laid out under last year’s Payment Services Act. Applicants will be subject to close scrutiny in the licensing process and ongoing supervision by MAS”.