SEC Targeting Coinbase and Binance Proxies
The U.S. Securities and Exchange Commission (SEC) has reportedly taken action against two entities that it believes to be operating as unregistered broker-dealers by providing proxy services to Coinbase and Binance customers.
The SEC has alleged that these entities, which are not named, have been providing services such as trading on behalf of Coinbase and Binance customers without registering as a broker-dealer with the SEC. This is in violation of the federal securities laws and the SEC has issued cease and desist orders to the entities.
The SEC is targeting these entities as proxies in its war on crypto, as it believes that they are providing services that should be regulated under the federal securities laws. The SEC is also concerned that these entities may be facilitating illicit activities, such as money laundering, that could harm investors.
The SEC’s actions are a reminder that the crypto industry is still subject to the same regulations as other financial markets. Companies operating in the space must ensure that they are compliant with all applicable laws and regulations, or risk facing enforcement action from the SEC.
The SEC has alleged that the two entities, Crypto Capital Corp and Global Trading Solutions LLC, have been operating as unregistered broker-dealers by providing proxy services to customers of Coinbase and Binance.
The SEC has also alleged that the two entities have been involved in the sale of unregistered securities.
The SEC has launched an investigation into the activities of Coinbase and Binance and is seeking to determine whether they have violated the federal securities laws. The SEC is also seeking to determine whether the two entities have engaged in any other activities that may have violated the federal securities laws.
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