The United States Securities and Exchange Commission (SEC) announced that it will sue the cryptocurrency platform coinbase for operating as a stock exchange and stockbroker without being registered.
After learning of the lawsuit, the shares of the cryptocurrency exchange platform sank 20% in the operations of the NYSE.
This SEC lawsuit comes one day after the same commission filed a complaint against Binance, the world’s largest cryptocurrency platform. According to an official statement, this is because Binance irregularly managed funds from its users and lied to investors and regulators, among other things.
The SEC vs. Coinbase
The EFE agency asserts that according to the SEC, Coinbase did not register the supply and demand of its cryptocurrency staking or betting service or its operations as a clearing house to guarantee exchanges between investors, credit institutions and other financial agents. .
“Since at least 2019, Coinbase has made billions of dollars illegally facilitating the buying and selling of crypto-asset securities,” the SEC maintains in the note, insisting that Coinbase mixes traditional stock market services with those of a stockbroker without having registered any of those functions.
This has caused, according to the SEC, that Coinbase investors do not have a series of protections such as inspections by the Securities and Exchange Commission.
“You can’t just ignore the rules because you don’t like them or because you prefer different ones: the consequences for the investing public are too great,” said the director of the SEC’s Division of Enforcement, Gurbir Grewal, quoted in the notice.
This Monday, June 5, the SEC filed a total of 13 charges against Binance and against its founder, Changpeng Zhao. He accuses them of ignoring US stock market laws to make billions of dollars.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.