Binance and US Regulators At Odds Over Voyager’s Acquisition

02/23/2023 09:09 • NFT Newsflash • 149 views

It is reported that New York and the federal financial regulators opposed Binance. US’s purchase of Voyager for US $1.02 billion and said it was discriminatory and illegal. SEC said that, given that the plan envisaged how to repay the former customers of Voyager, the contents of the proposed transaction between Binance.US and Voyager may also violate the law.

US SEC opposes Binance.US’s acquisition of Voyager with US $1 billion

Interpret the above information:

The acquisition of Voyager by Binance for $1.02 billion has come under scrutiny by both New York regulators and federal financial regulators. According to reports, both parties have opposed the acquisition, citing it as discriminatory and illegal. This has led the Securities and Exchange Commission (SEC) to raise concerns over the transaction, stating that it could potentially violate the law.

The reason behind the opposition from the regulators is the fact that the acquisition deal includes provisions for the repayment of former customers of Voyager. This has caused concern amongst the regulatory bodies as they feel that this arrangement may be in violation of the law. It is important to note that the SEC is well within its rights to scrutinize acquisition deals involving financial institutions as it plays a key role in ensuring that companies comply with federal laws.

This is not the first time that Binance has come under regulatory scrutiny. In recent months, the cryptocurrency exchange has been the subject of multiple regulatory probes stemming from its global operations. The opposition put forward by the US regulators is seen by many as a continuation of the country’s efforts to clamp down on Binance’s activities within its borders.

Binance, for its part, has maintained that the acquisition deal with Voyager is legal and that it would continue with the transaction. In a statement released by the company, it noted that it was “working with regulators to address any concerns they may have.” However, it is unclear at this stage what steps the company will take if it is found to have violated any laws.

In conclusion, the acquisition of Voyager by Binance is facing opposition from US regulators, who claim that the transaction is discriminatory and illegal. The SEC has raised concerns over the transaction, stating that it could potentially violate the law. Binance, on its part, has maintained that the transaction is legal and is working with regulators to address any concerns they may have. It remains to be seen how this situation will play out, but it is yet another example of the ongoing regulatory challenges faced by cryptocurrency exchanges.

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