SEC’s Lawsuit Towards Binance Might Prohibit its Enlargement in Hong Kong

• The Hong Kong lawyer Gilbert Ng shared insights on the affect of the SEC’s actions on town.
• The lawyer asserted that the SEC’s rules on Binance would hinder its enlargement in Hong Kong.
• Ng additionally asserted that the method of SEC in direction of Binance is totally different from its stance on Tether.

Gilbert Ng, a authorized counsel in Hong Kong asserted that the Securities and Change Fee (SEC) holds a distinct method to Binance when in comparison with its slant on Tether (USDT). The lawyer added that the SEC’s adamancy in Binance altogether leaving the USA would have opposed results on the trade’s license functions in different areas, together with Hong Kong.

On June 7, reporter Collin Wu took to Twitter to share Ng’s phrases on the affect of SEC’s authorized actions on Hong Kong.

Just lately, the SEC’s rules on Binance have been growing. The trade has been in hassle because the Commodity Futures Buying and selling Fee (CFTC) charged Binance within the identify of buying and selling unregistered crypto derivatives. Just lately, on Monday, the SEC filed 13 fees towards the trade together with Binance’s management over Binance US.

In keeping with Wu’s tweets, Ng asserted that the stringent guidelines the regulatory system imposed upon Binance would prohibit the trade from its enlargement in Hong Kong, along with the hindrances Binance faces in its clean functioning.

The lawyer additionally make clear the truth that Hong Kong has a full-fledged authorized framework for the governance of cryptocurrencies, with regulatory certainties. He added that such a supportive crypto ambiance gives little area for the SEC to intervene in Hong Kong’s cryptocurrency supervision.

Whereas analyzing the contrasting crypto situations of the US and Hong Kong, Ng acknowledged that the US lacks complete crypto governance legal guidelines and rules and the present legal guidelines are wanted to be strengthened. In distinction, Hong Kong holds a set of clear and handy crypto regulatory guidelines.

The reporter additionally shared the totally different definitions of securities held by the USA and Hong Kong, as highlighted by Ng. He posited that it isn’t vital that the cash which can be categorized as safety tokens within the US fall below the identical class in Hong Kong.

Lastly, Wu highlighted the restrictions on buying safety tokens by retail buyers, drawing insights from Ng. The reporter acknowledged, “At present, Hong Kong doesn’t permit retail buyers to buy safety tokens, solely skilled buyers are allowed to buy.”