What Being In Regulatory Crosshairs Means For Binance

investopedia.com:

Multiple U.S. regulators have the world's largest crypto platform, Binance, in their crosshairs. casting doubt on the path ahead.

U.S. regulators are getting serious about cracking down on cryptocurrency markets in light of the collapse of FTX. It's being eyed by agencies ranging from the U.S. Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and the New York Department of Financial Services (NYDFS).

«Binance is stuck in the middle of a coordinated attack on crypto by U.S. financial regulators,” said Thomas Hogan, a senior research at the American Institute for Economic Research. „Binance is being targeted because it's structured like the now-defunct crypto exchange, FTX—an offshore entity with 'regulated' U.S subsidiary.” 

Binance didn't respond to a request for comment.

In 2019, Binance.com ceased to operate in the U.S to comply with Know Your Customer (KYC) and anti money laundering (AML) rules.Instead, it launched Binance.US, a separate crypto-exchange in the U.S. that licenses the Binance name but is operated by BAM Trading services.

It's not just the number of regulators probing Binance and its U.S. partner that's worth noting-it's also the breadth of scrutiny. Product offerings, business decisions, and operations of Binance and its U.S. arm have all come under the lens of one regulator or another.

The SEC is objecting to Binance.US's $1.02 billion acquisition of bankrupt crypto lender, Voyager Digital. 

One of the biggest concerns for the SEC, as highlighted in court documents, is Binance.US's ability to safeguard investor assets. The regulator claims that the company hasn't provided adequate information about internal controls and custody of customer assets as well as whether third-party