Binance without a headquarters: unassailable?

Those who have been following the developments linked to the price of Bitcoin will not struggle to remember black days in the second half of May, when the value of the crypto fell significantly in a short time. On Wednesday 19, precisely in the moments that saw the currency plummet, the most important exchange in the world in terms of managed capital was unattainable: Binance out of order and investors who have chosen the platform to manage their portfolio unable to trade for over an hour. There are those who have lost a fortune.

The largest exchange in the world does not have a headquarters

Attempts to recover the funds have largely come to nothing. The Wall Street Journal writes about it (link at the end of the article) citing some of the protagonists of the story and highlighting the difficulties encountered by those who are trying to bring a legal action against the company. For what reason? It doesn’t have a true one headquarter. Founded in China, it formally has a headquarters in the Cayman Islands and another in the Seychelles.

Two groups currently working on this front, one in France and the other in Italy. The latter sent letters to 11 different European addresses attributable to the exchange and an email to the assistance service.

The platform has limited itself and replicate that episodes of extreme volatility such as the one that occurred on May 19 can create bottlenecks from a technical point of view, effectively avoiding any responsibility for what happened. In recent days the CEO Changpeng Zhao stated that the company is working to ensure compliance with the rules of the countries in which it operates, but forgetting to clarify what they are.

Among those affected by the down on May 19, some received some sort of compensation, a few months of free access to Binance’s premium features. Little, compared to losses in some cases estimated at tens of thousands of dollars. Some have fared much worse: according to the Wall Street Journall, 33-year-old Fawaz Ahmed saw the equivalent of $ 3 million dematerialize.

Recently the Financial Conduct Authority British imposed it stop of the activity to Binance in the UK, the banking institution Barclays has suspended money transfers to the exchange and a few days ago they also stopped SEPA transfers throughout Europe. Overseas, the US Department of Justice launched ainvestigation in order to clarify the possible role of the platform in activities related to recycling ed tax evasion. This is another reason why the authorities on a global level, including those of the old continent, are thinking about how regulate cryptocurrency trading.

Categories:   Digital Economy