News Roundup — SEC Sues Crypto Exchange Binance and CEO Changpeng Zhao

Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­

Major news stories this week;

1. SEC Sues Crypto Exchange Binance and CEO Changpeng Zhao, Alleging Multiple Securities Violations
2. SEC Sues Coinbase on Unregistered Securities Exchange Allegations
3. Circle obtains Major Payment Institution license in Singapore
4. Coinbase and Binance each see net outflows of more than $1 billion in 24 hours after SEC suit
5. Banks cut fiat on-ramps for Binance US, dollar deposits suspended

Story Summaries;

1. The U.S. Securities and Exchange Commission sued crypto exchange Binance, the operating company for Binance.US and Binance founder and CEO Changpeng “CZ” Zhao on allegations of violating federal securities laws on Monday. Binance, Binance.US and CZ offered unregistered securities to the general public in the form of the BNB token and Binance-linked BUSD stablecoin, said the suit, which also alleges that Binance’s staking service violated securities law.
2. The U.S. Securities and Exchange Commission (SEC) sued U.S crypto exchange Coinbase (COIN) on allegations of violating federal securities law, a day after filing a similar suit against Binance. According to the SEC, Coinbase has operated as an unregistered broker, exchange and clearing agency simultaneously, arguing that it solicited customers, handled orders, allowed for bids and acted as an intermediary all at once.
3. Circle has obtained a Major Payment Institution license from the Monetary Authority of Singapore — allowing the USDC stablecoin issuer’s affiliate, Circle Internet Singapore, to offer digital payment token services and cross-border and domestic money transfer services in the city-state. “This milestone signifies a huge step forward for the future of regulated, transparent, and trusted dollar digital currencies in Singapore and the greater Asia region,” Circle said in a press release.
4. Two of the world’s biggest cryptocurrency exchanges are feeling repercussions from the lawsuit filed by the Securities and Exchange Commission against Binance on Monday. According to blockchain data supplied by Nansen, both Binance and its rival Coinbase saw more than $1 billion in negative net outflow — or the difference between total withdrawals and deposits — in the first 24 hours since the lawsuit dropped.
5. Crypto exchange Binance US has informed users that US dollar deposits will be suspended and that banks providing fiat (dollar) on-ramps will sever services as early as June 13, just a few days after the Securities and Exchange Commission (SEC) slapped Binance and its chief exec with a lawsuit.

And that’s all for last week’s news! Wishing you a great week ahead!