In Crypto's latest saga, the government has taken strict action against crypto-staking companies and has filed a lawsuit against Kraken for $30 million. Ironically, as many users lie in wait to receive their recovered Mt. Gox bitcoin through Kraken, they may once again face uncertainty if Kraken were to face any more unforeseen difficulties resulting from this suit.
And the Saga Continues as I'm herded into Binance US!
Another concern of mine is now for Binance US, where I (a former Voyager customer) am being transferred. The promise of convenience from a quick transfer of my funds to Binance US has now been overshadowed by the SEC's declaration of intent to take action against crypto-staking companies.
With Binance US probably being one of the largest crypto-staking platforms in the US, it could be only a matter of time before it becomes the next shoe to fall. It appears that Binance US may be targeted by the SEC, and by the time Voyager claimants like me transition to Binance US, it may be too late to avoid any more potential consequences.
Image Source AI DALL-E2 - Crypto Staking Under Seige!
Luckily Binance US is regulated meaning there may be less to worry about than previously thought.
Since Binance US, the subsidiary of Binance, is subject to regulations in the United States, it should be in the clear as long as it abides by the prudent regulatory oversight of the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN).
Staking, which is the process of holding onto cryptocurrency in exchange for rewards, is considered a form of passive investment income by the SEC and is subject to securities laws. This means that staking activities offered by Binance US are subject to regulatory oversight and must comply with applicable laws and regulations.
The regulatory landscape for cryptocurrency is continually evolving, and regulations may change in the future, leaving many pitfalls for exchanges to avoid. Binance US may just be the little piggy to get away, however since it's a subsidiary of a larger murkier pond, it's still unknown what ramifications may arise when the European Securities and Markets Authority (ESMA) decides to drain the swamp.
So the best thing to do is to keep informed about any regulatory changes that may affect your crypto, get your money off the centralized exchanges, and switch to HIVE where your money is sound.!
