Author: Syedur Rahman 7 June 2023
The current legal problems faced by some crypto trading platforms could, according to Syed Rahman, lead to compliance being taken more seriously.
This, Syed told PaymentSecurity, could be beneficial for the future of the cryptocurrency sector.
He was asked for his thoughts on the US administration stepping up regulatory enforcement against cryptocurrency trading platforms, with lawsuits targeting Binance and Coinbase for alleged violations of securities laws.
Syed explained that there are striking resemblances between the exchange FTX, which collapsed last year, and Binance; including the commingling of billions of dollars of customer funds, the transfer of billions of dollars of customer funds to third parties controlled by a CEO and the misleading of customers in relation to trading controls and corporate governance.
But he said that while a US Securities and Exchange Commission (SEC) lawsuit against a crypto trading platform such as Binance can appear to be damning for the crypto sector, it could eventually prove to be promising from a long-term perspective.
He explained: "Poor practices as alleged by the SEC in these instances will likely lead to business failures and collapse, as with FTX. But if these cases mean that compliance is taken more seriously in the future, this could be positive for crypto's long-term future.’’
The full article can be read here.
Syedur Rahman is known for his in-depth experience of serious fraud, white-collar crime and serious crime cases, as well as his expertise in worldwide asset tracing and recovery, international arbitration, civil recovery, cryptocurrency and high-stakes commercial disputes.