The Israel capital markets regulator has asked the cryptocurrency exchange Binance for clarifications regarding services offered in the country and licensing. Globes reports.
The regulator noted that the exchange, unlike other industry players, had not sought approval.
According to the regulator, about 200,000 Israelis used Binance’s services. The platform had previously added Hebrew language support.
“At this stage, after the regulator’s intervention, Binance ceased Israel-targeted marketing and all Israel-focused activity for the duration of the licensing review,” the regulator said.
A local community representative confirmed to CoinDesk that the exchange had removed Hebrew language support and Israel’s currency—the shekel—from the trading platform.
Throughout 2021, regulators in several countries, including Netherlands, Italy, the United Kingdom, Poland, Japan, Thailand, Hong Kong, Singapore and South Africa, issued warnings concerning Binance’s activities or took measures against the exchange. Ontario Securities Commission in Canada warned about the absence of a license.
Against this backdrop the exchange decided to abandon its decentralized business model, which raises most questions for regulators. As possible jurisdictions for the headquarters of Binance CEO Changpeng Zhao, he first named France, and then Singapore or the UAE.
In December the exchange withdrew its application for a license from the regulator of the island nation and received a preliminary approval to operate in Bahrain.
As reported in January 2022, Reuters published an investigation, according to which Binance repeatedly hid information from regulators and disregarded KYC procedures despite the recommendations of its own compliance department.