Cryptocurrency exchange Binance has halted certain services in Israel shortly after the local regulator, the Capital Market, Insurance and Savings Authority, asked the exchange to clarify its business in the market, a local news outlet Globes has learned.
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According to the report, the exchange stopped marketing to Israelis and all activities focused on the market until the regulator examines the matter:
"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 report noted that Binance does not comply with the local rules which means it will be very difficult for investors "to return the money to the financial system in Israel." As of press time, Binance made no official statement on the matter.
The move comes after reports said that the US Securities and Exchange Commission (SEC) is probing the relationship between Binance.US and two trading firms tied to Binance's founder Changpeng Zhao. The two trading firms, Sigma Chain AG and Merit Peak Ltd., reportedly act as market makers on Binance.US and the watchdog wants to find out if there is any unfair advantage with preferential access. The SEC made no allegations against Binance.US of wrongdoing.
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