Uzbekistan’s National Agency for Prospective Projects (NAPP) has decided to sue Binance, a leading cryptocurrency exchange, for violating the country’s regulations on crypto trading. NAPP fined Binance 102 million soms (about $8,200) for operating without a license in Uzbekistan, but the company has failed to comply with the order.
Binance’s legal troubles in Uzbekistan are indicative of the difficulties that international crypto exchanges face in complying with different regulatory regimes. According to NAPP’s deputy director, Vyacheslav Pak, Binance has ignored the fine and refused to pay it, forcing the agency to take legal action. NAPP will file a claim in court and seek to enforce the decision in the jurisdiction where Binance is registered.
Binance Faces Hurdles In International Regulations
Uzbekistan has strict rules for crypto exchanges, requiring them to obtain a license from NAPP and to host their electronic trading systems on servers located in the country. Despite catering to customers in Uzbekistan, Binance has failed to fulfill these requirements.
Binance is also facing regulatory hurdles in other countries, such as South Korea, where it recently sold its stake in GOPAX, a major Korean crypto exchange, after facing concerns from the Financial Services Commission (FSC) over its governance structure and capital adequacy. BNB has been trying to expand its global presence but has encountered resistance from various authorities.
However, these incidents show the complexity and diversity of the regulatory landscape that crypto exchanges have to navigate. As more countries impose stricter regulations on crypto trading, exchanges like BNB have to adapt and comply with different legal and regulatory standards.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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