The Cayman Islands Monetary Authority said while the crypto exchange is currently not subject to its oversight, it is conducting an investigation to determine if any activities fall within its jusrisdiction
Binance, the world’s largest cryptocurrency exchange, is facing more regulatory troubles after the Cayman Islands financial watchdog said the company is not licenced to operate a crypto exchange in the British Overseas Territory.
In a news release on Thursday, the Cayman Islands Monetary Authority (CIMA) said Binance is “not registered, licensed, regulated or otherwise authorised by the Authority to operate a cryptocurrency exchange from or within” the territory, adding that it is currently investigating whether the company or its affiliates “has any activities operating in or from within the Cayman Islands which may fall within the scope of the Authority’s regulatory oversight”.
READ: Binance’s UK customers blocked from making cash withdrawals following FCA ban
While Binance is domiciled in the Cayman Islands, its activities are currently not subject to CIMA oversight, however, if the investigation concludes the business falls within regulatory jurisdiction the exchange will require a licence to provide virtual asset services.
CIMA’s intervention is the latest in a series of moves by regulators around the world to bring Binance to heel.
Earlier this week, UK customers using Binance were blocked from making cash withdrawals through cards and into bank accounts from the exchange after the Financial Conduct Authority (FCA) banned the platform amid concerns over rising levels of crime.
Other countries, including Japan, Germany and the US, have also voiced concerns about Binance’s operations, while the firm has also pulled out of Ontario, Canada, after failing to with regulations there.