Binance Lawsuit in Canada: CZ Faces Possible 36-Month Prison Term

Binance, a popular cryptocurrency exchange, is facing a new class-action lawsuit in Canada. The lawsuit accuses the firm of violating local securities laws by selling crypto derivative products to retail investors without proper registration. The plaintiffs, who are seeking damages and rescission of unlawful trades, claim that tens of thousands of Canadian users invested in Binance’s cryptocurrency derivatives products. In addition to the lawsuit, the Philippines Securities and Exchange Commission (SEC) has ordered Google and Apple to remove the Binance app from their respective app stores in the Philippines. The SEC stated that Binance’s activities violate the country’s securities regulations and removing the app will help prevent further illegal activities.

Binance founder Changpeng Zhao, also known as CZ, is facing legal trouble in the United States. Prosecutors have requested that CZ serve 36 months in prison after pleading guilty to money laundering charges. The prosecutors argued that CZ’s willful violation of US law and its consequences warrant a sentence above the guideline. In addition to the prison sentence, CZ has agreed to pay a $50 million fine.

In Europe, the European Parliament has approved new regulations to combat money laundering in the cryptocurrency industry. The regulations impose formal due diligence obligations on cryptocurrency companies, including crypto asset managers, and require them to report any suspicious activities to authorities. These laws will impact crypto asset service providers, centralized crypto exchanges, and gambling services.

The United States Securities and Exchange Commission (SEC) is reviewing new guidelines for trading options on Bitcoin exchange-traded products (ETPs). The SEC is seeking input on how listing Bitcoin options could affect the overall market, particularly during times of stress. The review will also assess whether the current surveillance and enforcement mechanisms for Bitcoin options are adequate. The feedback received from previous comments highlighted the potential benefits of options on Bitcoin ETPs, including increased liquidity and improved market efficiency.

Despite the upcoming launch of spot Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong, Chinese investors will not be able to participate. Bloomberg data analyst Jack Wang explains that although Chinese asset managers have subsidiaries in Hong Kong and are launching these ETFs, they will not be able to offer Bitcoin or Ether exposure to investors in mainland China.

7 thoughts on “Binance Lawsuit in Canada: CZ Faces Possible 36-Month Prison Term

  1. It’s great to see the SEC reviewing guidelines for trading options on Bitcoin ETPs. This could potentially bring more liquidity and efficiency to the market.

  2. Binance’s legal troubles are a wake-up call for the crypto industry. It’s time to prioritize compliance and regulatory standards. ⚖️

  3. It’s good to see regulations being imposed on crypto companies. Transparency is essential in this industry.

  4. The crypto industry needs more stringent regulations to prevent illegal activities and protect investors. Let’s work towards a safer and more transparent market.

  5. Binance’s activities in the Philippines are unacceptable. Glad the SEC is taking action to prevent further illegal activities. 🙅🇵🇭

  6. It’s crucial for crypto companies to conduct due diligence and report any suspicious activities. Let’s make the crypto industry a safe space for everyone! 🛡️

  7. This is outrageous! Binance needs to be held accountable for violating securities laws.

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