Binance US, the United States-based subsidiary of Binance, has encountered opposition from regulators for its $1 billion deal to acquire Voyager Digital Ltd, a publicly-traded crypto asset manager and broker. The deal was announced earlier this month but it has now been revealed that the U.S. Securities and Exchange Commission (SEC) is opposed to it due to concerns about the level of disclosure given by Voyager in its public filings. In this blog post, we will take a closer look at why the SEC is concerned and what this means for Binance US’s plans going forward.
Binance US’s $1 Billion Deal For Voyager Asset Acquisition
The U.S. Securities and Exchange Commission (SEC) has come out in opposition to Binance US’s proposed $1 billion acquisition of digital asset startup Voyager Asset Management.
In a filing with the SEC, the commission said that it had “serious concerns” about the deal, which was first announced in September of this year. The SEC believes that the deal could give Binance an unfair advantage in the digital asset trading space.
“The proposed acquisition would concentration power within a single entity and Give rise to numerous potential risks to investors and the markets,” the SEC said in its filing.
Binance US is a digital asset exchange launched by Binance, one of the world’s largest cryptocurrency exchanges, in 2019. The exchange is available to U.S. customers and offers trading in a variety of digital assets.
Voyager is a digital asset startup that offers a mobile app for buying, selling, and storing digital assets. The company also provides a custodial service for institutional investors.
The SEC’s filing comes as a blow to Binance US’s plans to expand its business in the United States. The deal would have been one of the largest acquisitions in the digital asset space to date.
US Regulators’ Opposition to the Deal
US regulators have opposed Binance US’s proposed $1 billion acquisition of Voyager Asset Management. The US Securities and Exchange Commission (SEC) is concerned that the deal would give Binance too much control over the cryptocurrency market.
The SEC has also raised concerns about Binance’s ability to comply with US regulations. Binance is not registered with the SEC, and the regulator has warned that it may take enforcement action if the exchange does not comply with US law.
The opposition from US regulators is a major setback for Binance, which had hoped to expand its presence in the US with the acquisition of Voyager. The deal would have given Binance a significant share of the US cryptocurrency market, but it now appears unlikely to go ahead.
The Impact of the Opposition on Binance and Voyager
The United States Securities and Exchange Commission (SEC) has filed a notice of opposition to Binance US’s proposed acquisition of Voyager Asset Management. The SEC believes that the deal, which is valued at $1 billion, would give Binance an unfair advantage in the digital asset management space.
The SEC’s opposition comes as no surprise given the recent scrutiny that Binance has come under from US regulators. In March, the SEC issued a warning to investors about the risks associated with investing in digital assets that are not registered with the commission. And in May, the Department of Justice launched a criminal probe into whether Binance violated anti-money laundering laws.
Despite the SEC’s opposition, Binance US CEO Catherine Coley said that the deal is still on track to close by the end of 2019. However, it is worth noting that the SEC has the power to block or delay mergers and acquisitions if it believes that they are not in the best interests of investors.
What the Future Holds for Binance and Voyager
The US Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, alleging that the company engaged in illegal activity. The SEC alleges that Binance allowed US residents to trade digital assets without registering as a broker-dealer, and failed to provide adequate disclosures about the risks of investing in digital assets.
The SEC’s lawsuit is likely to have a negative impact on Binance’s proposed acquisition of Voyager Asset Management, a US-based asset management firm. The deal was announced in September 2019 and was valued at $3 billion. It is unclear if the deal will proceed in light of the SEC’s lawsuit.
Binance is one of the world’s largest cryptocurrency exchanges, with a 24-hour trading volume of $2.8 billion. The company is headquartered in Malta and has offices in Singapore, Tokyo, and Hong Kong.
Conclusion
US regulators’ opposition to Binance US’s proposed $1 billion deal for Voyager Asset Acquisition demonstrates the need for cryptocurrency exchanges to be better regulated. This is an important step in ensuring that any new acquisitions are thoroughly vetted by relevant authorities before they take place, so as to protect investors from potential risks and safeguard their investments. By doing this, we can ensure a safe and secure trading environment for all of our digital assets.
