In addition, Binance already holds the following regulations:
“Binance continues to demonstrate its commitment to work closely with regulatory agencies to uphold global standards. Our registration in Sweden is the result of many months of diligent, hard work from our team, underpinning our commitment to the Swedish market and our users. We are deeply grateful for the support from the Swedish Financial Supervisory Authority throughout the application process and for the approval. Sweden is now amongst the growing list of global jurisdictions that have granted regulatory approval to Binance.”
By granting Binance approval for providing crypto services, FSA allowed Swedish residents to access a broad range of services legally. Customers can now make deposits and withdrawals in their native fiat currency, the euro. They can also trade, stake, and obtain the Binance Visa Card.
The regulation with the FSA comes while news about Binance bleeding money spreads like fire. There have been rumors about Binance USD, a native exchange stablecoin, having trouble maintaining its peg to USD. These rumors were confirmed by ChangPeng Zhao, who admitted that they haven’t always regularly updated the liquidity information. This caused BUSD to drop below $1 per coin. Additionally, BUSD and BNB, both native tokens, lost 29% and 37% of their value, respectively, in the previous two months.
Another crypto firm, Nansen, broke the news that Binance lost $3 billion of its assets in the first week of December. This represents 4% of the company’s total value.
Combined with the recent fall of the FTX exchange, this caused investors to withdraw millions of funds from their accounts. According to the data from the crypto firm Defillama, Binance suffered a loss of $360 million net on January 6th.
Although still the largest crypto exchange, Binance is not immune to money loss. In addition, the company is under investigation by US federal prosecutors.
The inquiry against Binance US officially started back in 2018. However, there hasn’t been enough evidence to proceed. In light of all the events in the crypto community in 2022, it looks like the US federal prosecutors have decided to continue their work.
In December 2020, the prosecutors demanded internal records about anti-money laundering checks. Besides, they requested the communication of all the officials, including the exchange CEO. This request saw daylight in January 2023, while previously kept secret.
Binance explained that this is a routine check of all the crypto exchanges as a response to the recent FTX misconduct. However, having in mind that the request was made back in 2020, there’s a big question of whether there’s something to worry about when it comes to Binance US operations.
Currently, all the evidence is under evaluation. We’ll soon find out whether the US government and the exchange will reach a settlement agreement. Or maybe Binance will be another on the list of federally charged exchanges.
While it seems that Binance’s popularity in the US is quite shaken, receiving another regulation in Europe indicates EU trust in the exchange. Swedish Financial Supervisory Authority gave its green light after a thorough investigation. Still, it announced that it would keep monitoring the company to ensure compliance with Swedish and European financial laws and AML policies.
In the hope that we won’t witness another Celsius scenario, we advise you to be cautious with Binance. While obtaining worldwide approvals, this is a centralized crypto exchange whose liquidity depends on BTC but also their native tokens.
If you’re concerned about keeping your funds with any of the existing exchanges, you can always consider self-custody. That way, you and only you are responsible for keeping your digital coins safe.
Don’t let scammers win! Fight back and find your crypto before it’s too late!
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