- Binance has come under scrutiny from the Israel Capital Markets Authority.
- In response, the exchange stopped marketing to Israeli citizens and removed several accessibility features.
- Despite Binance CEO Changpeng Zhao advocating for more proactive compliance, the exchange still faces regulatory issues.
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Binance has halted marketing activities to Israelis and removed Hebrew language support following intervention by the Israel Capital Markets Authority.
Binance caught in a license issue
The world’s largest cryptocurrency exchange is facing increased regulatory scrutiny.
according to a thursday report via israeli news balloonsThe Israel Capital Market Authority, the government body in charge of cryptocurrency exchange licenses, has asked Binance to clarify its activities in the country. The report stated that the exchange had not applied for a license to operate in Israel from the Capital Market Regulatory Authority as the reason for the intervention.
In response to the CMA’s comments, Binance stopped marketing activities to Israeli citizens and removed several accessibility features. According to Ben Samocha, who runs the local crypto media platform CryptoJunglethe exchange has remote Hebrew language support on the Binance website and removed the Israeli Shekel for credit card purchases. balloons estimates that approximately 200,000 Israelis use the exchange to trade cryptocurrencies.
The scope of the CMA inspection is not yet clear. However, judging by Binance’s reaction, it appears to be preparing for the worst by proactively removing support for Israeli citizens.
Regulators around the world have issued warnings that Binance was not a registered business last year. In June 2021, the UK Financial Conduct Authority set that the exchange was not permitted to carry out any regulated activity, such as offering futures or derivatives trading, without the prior written consent of the FCA.
Furthermore, Binance has cut futures and derivative products across Europe due to regulatory pressure. While the exchange still operates in many European countries, it hasn’t been so lucky elsewhere.
Malaysian authorities issued an enforcement action against Binance last July, ordering the exchange to deactivate the Binance.com website and mobile applications in the country. The Malaysian Securities Commission said that by “operating illegally” in the country, Binance violated the Capital Markets and Services Act of 2007.
It remains to be seen whether the Israeli authorities will take the same kind of action as Malaysia. However, while the firm’s CEO, Changpeng Zhao, previously set While Binance will be more proactive in its compliance with local laws, the exchange still faces similar regulatory issues as it has previously faced.
Disclosure: At the time of writing, the author owned ETH and several other cryptocurrencies.
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