Binance Halts Operations in Israel Following Regulator’s Scrutiny
Israel's Financial Regulator Targets Binance
According to Israeli-based news outlet Globes, the Capital Market, Insurance and Savings Authority has asked Binance to clarify its activities in the Israeli market and the licenses under which it operates.
Companies offering crypto services in Israel are required to obtain a license to operate in the country. The report clarifies that Binance has not yet obtained a license from the Capital Market Regulatory Authority.
In response to the regulator’s intervention, Binance halted all trading activities. It is estimated that about 200,000 Israelis are using Binance to trade cryptocurrencies, the publication conveyed.
"Following the intervention of the capital market, Binance has at this stage stopped marketing to Israelis and all activities focused on Israel until we examine the issue of licensing,” the Capital Markets Authority was quoted saying in the Globes report.
Binance's Regulatory Issues Across Jurisdictions
Binance has been facing intense regulatory scrutiny across jurisdictions for operating without a license, including in the US, UK, Canada, Germany, Italy, India, Malaysia, Singapore, Turkey, and Lithuania.
In January 2022, Binance restricted 281 Nigerian accounts at the request of local law enforcement. This week, the US Securities and Exchange Commission (SEC) is reportedly probing the American arm of Binance.
In August 2021, the crypto platform declared that compliance is now its top priority, adding that it is making 'substantial changes' to become a regulated financial institution. A month later, the company appointed its first chief regulatory liaison officer, Mark McGinness from the Dubai Financial Services Authority, where he spent 16 years as head of international relations.