SEC Investigates Trading Firms Affiliated With Binance

The Securities and Exchange Commission has become interested in the trading partners of the Binance crypto exchange.

According to WallStreet Journal, the regulator is once again trying to draw attention to the activities of Binance US. 

Now the SEC is interested in relationshipscrypto companies and two trading firms, the founder of which is also listed as Zhao. Two market makers, Sigma Chain AG and Merit Peak Ltd., trade crypto assets on the American platform. The regulator was attracted by the fact that this information is hidden from customers.

The department suspects that those belonging to ChangpengZhao companies not only profit on margin from trading cryptocurrencies, but also manipulate prices in the interests of the exchange and Zhao himself. The regulator is interested in whether trading partners receive benefits from the exchange or, for example, bonuses in the form of accelerating trading speed. 

The representative of the exchange is sure that the company is notviolates applicable US law. As a privately held firm, Binance is not required to disclose corporate structure information unless requested by the regulator.

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