US Commences Investigation Into Binance Coin BNB

The United States regulators have commenced an investigation into the activity and mode of operations of the world’s leading cryptocurrency exchange company, Binance.

In a report published by Bloomberg on Monday, the U.S. top business platform said the regulators are looking into whether Binance Holdings Limited broke the United States securities rules by selling BNB tokens as the exchange was getting off the ground about five years ago.

The Securities and Exchange Commission’s review pries into the firm’s origins and those of its BNB token, which is now the world’s fifth-biggest. Investigators are examining if the 2017 initial coin offering amounted to the sale of a security that should have been registered with the agency, said the people who were granted anonymity to discuss the confidential probe.

Scrutiny of BNB’s beginnings may be a troubling development for Binance as it faces multiple investigations in Washington. The SEC has brought dozens of enforcement actions over ICOs, which involve issuing virtual coins to raise money. BNB has been a feature of Binance’s expansive crypto empire.

In a statement, Binance said “it would not be appropriate for us to comment on our ongoing conversations with regulators, which include education, assistance, and voluntary responses to information requests.” The company added that it works with authorities and “we will continue to meet all requirements set by regulators.”