Binance Halts Activities In Israel Amid Regulatory Scrutiny

Facing increased scrutiny from the country’s financial regulators, Binance paused all of its services in Israel. BNB token plunged on the news.

On Thursday, Israel’s Capital Markets Authority, the country’s chief financial regulator, asked Binance to clarify its activities. In particular, Israeli authorities asked Binance to clarify the services it provides and the license under which it operates.

According to the regulator, one of the largest exchanges in the world has stopped key operations after the probe.

Following the intervention of the capital market, Binance has at this stage stopped marketing to Israelis and all activities focused on Israel until we examine the issue of licensing

Specifically, Binance stopped offering Hebrew language support or the Israeli shekel. Moreover, the exchange stopped all marketing activities in the country.

Binance native token BNB was down 5% after the news. The token could face more pressure in the future if the exchange continues to face regulatory issues.

Regulatory Issues

At the same time, Binance faces increased scrutiny in the U.S. The Securities States Securities and Exchange Commission (SEC) is looking into Binance.us, the U.S. branch of the company.

The SEC is reportedly looking into its relationship with its two trading affiliates, Sigma Chain AG and Merit Peak Ltd. The first work as market makers, providing liquidity and reducing volatility in the market. Regulators want to know if the two firms have preferential treatment over others.

In June 2021., the U.K.’s regulators warned Binance against offering futures and derivatives trading without their approval. The exchange also had to drop its futures and derivatives products in Netherlands, Italy, and Germany.

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The scrutiny comes after a report questioned Binance’s practices with regard to compliance. Reuters claimed that the exchange relaxed know your customer procedures for high-capital clients.

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