The Securities and Exchange Commission has become interested in the trading partners of the Binance crypto exchange.
According to Wall Street Journal, the regulator is once again trying to draw attention to the activities of Binance US.
Now the SEC is interested in the relationship between the crypto company and two trading firms, the founder of which is also listed as Zhao. Two market makers, Sigma Chain AG and Merit Peak Ltd., trade crypto assets on the US platform. The regulator was attracted by the fact that this information is hidden from clients.
The agency suspects that companies owned by Changpeng Zhao not only make profit on margin from trading cryptocurrencies, but also manipulate prices in the interests of the exchange and Zhao himself. The regulator is interested in whether trading partners receive benefits from the exchange or, for example, bonuses in the form of accelerating the speed of trading.
The exchange representative is confident that the company does not violate current US law. As a private company, Binance is not required to disclose information about its corporate structure without regulatory requests.
Subscribe to ForkNews on Telegram to stay up to date with news from the world of cryptocurrencies
You May Also Like
Coinbase blocks Bitcoin Cash withdrawals, investors suffer losses
Coinbase continues to keep investor funds still locked up as it waits for "stability" on the BCH network and prices continue to spike, bankrupting traders.
Stolen funds from Bithumb were transferred to Yobit accounts
Most of the stolen funds from this year's Bithumb hack were sent to the Russian exchange Yobit. Crystal Blockchain Analytics analysts came to this conclusion after a thorough study of the data.
