Binance is facing regulatory scrutiny in Israel by the local Capital Markets Authority (CMA), which is seeking the crypto exchange’s licensing details and clarification of its activities in the Israeli market.
As reported by local news outlet Globes, the CMA asked the crypto exchange giant to provide clarification on the types of services it is offering to Israeli clients, along with the details of the license under which it is operating.
Cryptocurrency exchanges in Israel require to operate with a license obtained locally, and the CMA is responsible for granting these licenses. However, Binance did not hold or even submit an application for obtaining a CMA license.
Binance has crypto exchange operations across the globe. Additionally, it is specifically targeting Israelis and introduced services in the Hebrew language. Moreover, it is estimated that around 200,000 Israeli crypto investors and traders have signed up as Binance clients.
As the result of the scrutiny, Binance halted all of its marketing efforts in the country and suspended all activities focused on Israel, the regulator confirmed. The exchange even removed its support in the Hebrew language and local currency, the shekel.
Largest, Yet Unregulated
Despite being the largest global crypto exchange in terms of trading volume, Binance is in a tussle with several regulators, mostly for operating without proper approval. Several financial market supervisors issued warnings against the crypto exchange last year, many even took enforcement actions.
The US crypto exchange giant is even reportedly facing a probe of the US securities market regulator for its ties with two of its market maker affiliates. The investigation is focused on the relations of the CEO of Binance, Changpeng Zhao, and two market-making entities, Sigma Chain and Merit Peak.
Though Zhao made a crypto empire mostly by bypassing regulators, he is now focused on making amends with them and hired several former regulatory staffers. Furthermore, the exchange is looking for a jurisdiction to establish its headquarters.
