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The SEC Files Criminal Complaint against Binance over Unregistered Operations

The Securities and Exchange Commission (SEC) in Thailand recently filed a criminal complaint against Binance over unregistered operations. In Thailand, a licence is required to provide services related to digital asset trading. The SEC alleged that Binance has operated a cryptocurrency exchange business in Thailand without a license, in breach of the Digital Asset Business Decree. The SEC further claimed that the exchange platform has used its website and Facebook page to solicit the Thai public to use its services.

In April, the SEC issued Binance with a warning letter requesting a written response as to its unauthorised advertisements and posts but received no response within the specified time period. As such, the SEC has now filed a criminal complaint with the Thai police.

The complaint marks the beginning of a criminal procedure. Following this, the police will investigate the claims and decide whether or not to recommend prosecution to the public attorney who has the power to prosecute the exchange platform. A court will then determine guilt.

Binance is one of the world’s largest cryptocurrency exchange platforms. Despite its global reach, the operator has received several warnings and is under scrutiny by various other financial regulators including the US, Germany, Japan and Singapore, and has been banned by the UK’s Financial Conduct Authority.  The action filed by the SEC is one of the more significant claims against Bianance with a contravention of sections 26 and 66 of the Decree carrying a penalty of two-five years’ imprisonment, a fine of 200,000-500,000 baht and a daily fine of up to 10,000 baht for every day the contravention is not rectified.

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