The US Securities and Exchange Commission (SEC) plays a leading role in regulating cryptocurrencies. The company expressed its concerns in a joint status report to the Washington, DC District Court yesterday. The issue also raised concerns in a joint status report that BAM Trading Service, which operates as Binance.US, noted. However, the company claims that Binance.US did not provide a satisfactory response to its inquiry regarding the custody of customer assets for the sake of its investigation. So they have approached the court so that the regulatory agency can do their investigative work very quickly.
Binance.US is a US-based exchange platform only for US citizens. However, it allows non-US citizens, such as non-US Army personnel, to use the exchange platform. However, the SEC recently claimed that these exchange platforms have shown reluctance to comply with many basic discovery obligations. That is, they have shown their unwillingness or inability to comply with basic discovery obligations, including the creation of metadata related to requested documents and the attachment these exchange platforms require.
The US Securities and Exchange Commission claims that these exchange platforms are not answering the right questions correctly. Because the US Securities and Exchange Commission wanted to know about whether this exchange platform had access to the assets of non-US arm employees in order to facilitate their investigation. They said it was a central issue of the investigation. The regulator claimed the exchange platform did not adequately respond to questions asked by the US Securities and Exchange Commission about whether employees of Binance's non-US arm had access to Binance.US customer assets.
However, the exchange platform later responded that it complied with all requests for information. Even this exchange platform claims that Ya is doing what they describe as "extraordinarily broad". The exchange platform also claims that customer asset complaints are baseless and has exceeded its obligations to the regulator by providing thousands of documents related to its asset custody practices, including declarations under oath and monthly reports. To know more about this, you can read this news .