The Securities and Exchange Commission (SEC) in Thailand has joined a handful of regulators in lodging a criminal complaint against cryptocurrency exchange platform, Binance. The Thai SEC alleged that Binance had persuaded the Thai public and investors to use its services through some unlawful means, hence the complaint.
According to the SEC, Binance has used its website, Facebook Page, Binance Thai Community, to provide platform services for trading or exchanging digital assets by matching orders for persons who wish to trade or exchange digital assets or arranging for their counterparties amongst many other means.
Since digital asset businesses are regulated under the Digital Asset Business Emergency Decree, only providers who have obtained pertinent licenses under the law can provide services related to digital asset trading, exchange, depository, transfer, withdrawal, or any transactions related to digital assets.
Binance’s activities are therefore said to be illegal because the exchange provider was not permitted by the law to perform them. They, therefore, violated or failed to comply with Section 26 of the Digital Asset Businesses Emergency Decree.
The SEC’s filing of a criminal complaint against Binance is just the start of the event of a series of criminal proceedings. The Economic Crime Suppression Division of the Royal Thai Police (ECD) will have to perform further investigations before recommending the case to the public attorney who has the power to prosecute.
If Binance is found guilty by Thailand’s court of justice, they could receive punishments such as “imprisonment for a term of two to five years and a fine of 200,000 to 500,000 baht ($5000-$15,000) and a further daily fine not exceeding 10,000 baht ($310) for every day during which the contravention continues criminal sanction”, says Section 66 of the Digital Business Assets Emergency Decree.
Whatever punishment accorded to Binance might be considered fair, the SEC issued a warning letter to Binance in April, expecting them to submit a written response within a specified time to which Binance failed to do so.
Barely a week ago, Coinfomania reported that Binance helped international law enforcement agencies take down a cyber-criminal group called FANCYCAT. That development perhaps agrees with Binance’s long know stance, that the company often collaborates with regulators rather than operates illegally.
In recent times, regulators in the UK, Singapore, and the Cayman Islands have all published warning orders against Binance.
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