Just recently, the British authority FCA has banned the crypto exchange Binance from trading with regulated products such as derivatives and also issued a warning to users of the platform. Now, according to its own information, the world’s largest crypto exchange is apparently being targeted by the authorities worldwide, because Binance is now also investigating a corresponding institution in the Cayman Islands. Only scaremongering-or is the coin provider really threatening trouble?

Binance and the authorities

The Cayman Islands Monetary Authority (CIMA) is currently investigating Binance. As they say, the world’s largest exchange is supposed to operate on the island without a license. The CIMA clarifies in an official statement: Neither Binance nor any of its affiliates is authorized to provide such services in the country.

The press release emphasises:

“The Authority is currently investigating whether Binance, the Binance Group, Binance Holdings Limited or any other entity associated with this group of companies is engaged in any activity in or from the Cayman Islands that may fall within the scope of the Authority’s regulatory oversight.“

However, Binance Group and Binance Holdings Limited are not registered, licensed, regulated or otherwise authorized by the authority to operate a cryptocurrency exchange within the Cayman Islands. According to the regulator, any company incorporated or registered under the Cayman Islands Companies Act of 2020 that provides virtual asset services must hold a license (under the Virtual Asset Service Providers Act, VASPA).

Binance considers itself “decentralized”

A spokesman for Binance comments on the allegation, referring to the” decentralized ” nature of the exchange. One is really decentralized and therefore has no “physical” headquarters:

“Binance.com has always worked in a decentralized way. Binance.com does not operate a cryptocurrency exchange from the Cayman Islands, as previously falsely reported in some media articles.“


“However, we have companies that have been established under the law of the Cayman Islands and carry out activities that are permitted by law and are not related to the operation of crypto exchange trading activities. We will work with regulators to resolve any issues.”

A few months ago, Binance claimed that the company’s headquarters were in Malta. But according to local authorities, Binance is not registered there either. Time and again, the crypto exchange for coins such as Bitcoin, Ethereum (to buy from eToro) or Dogecoin has been in the media lately on the subject of regulation and licenses, most recently in the UK as mentioned at the beginning: According to the Financial Conduct Authority (FCA), the British Binance offshoot Binance Markets Ltd “may no longer carry out any regulated activities without the prior written consent of the FCA with immediate effect”.

For many, these are normal measures of a regulatory authority – but numerous media outlets thought Binance was already at the end of the story. It turned out differently: The platform suspended its operation for just one day – after which it went back to normal. It is quite possible that this will also happen in the Cayman Islands.

Binance CEO Changpeng Zhao speaks of scaremongering (“FUD” – Fear, Uncertainty & Doubt) and comments on Twitter relaxed:

“A lot of FUD; a lot of problems to solve; a lot of possibilities.“

Top Brokers for buying and trading cryptocurrencies

  • Buy Real Bitcoin or Bitcoin CFDs
  • Wallet and Exchange in one
  • 14 + Cryptos
  • EU regulated
  • Over 40 cryptos on offer
  • Fees rather in the midfield

Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.