Mar 27, 2023
A Timeline of Binance's Run-Ins With Global Crypto Regulators
(Bloomberg) -- The dramatic US enforcement action against Binance on Monday is the latest in a long history of run-ins between the world’s largest crypto exchange and regulators around the world.
In a forceful move to crack down on the most systemically important player in the $1.1 trillion industry, US authorities on Monday sued Binance and its chief executive Changpeng “CZ” Zhao for allegedly breaking trading and derivatives rules.
Read more: Zhao’s Binance Empire Dwarfs FTX at Peak and Dominates Crypto
To critics, it’s a long time coming. The Commodity Futures Trading Commission charges follow past warnings from the likes of Japan, the Netherlands and the UK — all alleging that Binance operated without their permission.
Here’s a timeline of Binance’s spats with watchdogs around the globe:
The exchange has recently admitted to past “gaps” in compliance and has courted regulators. It has had some successes, with France, Italy and Dubai granting it regulatory approval last year. But with FTX’s collapse in November underscoring the risk to retail investors, the CFTC case is the latest sign that policymakers are stepping up their scrutiny on a firm accused of routinely breaking US derivatives rules, among other charges.
Back in 2017, Zhao started a website that let users anywhere trade virtual currencies, paying little heed to compliance with local laws governing financial products. The Binance executive was hardly the first to capitalize on this unregulated corner of finance but he has proved the most successful. After the implosion of rival exchange FTX, its stranglehold on key corners of the crypto industry has only grown, drawing further regulatory scrutiny.
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