Potential Problems Loom on the Horizon for Binance’s New Customer Blockchain

Legal issues may arise for Binance and their new BNB Tokens, especially if the new coins will be classified as securities. As of now, Binance Chain will be a simple exchange, but the BEP2 tokens may face legal ramifications if they are chosen as a security be feds. The SEC may decide to classify the tokens as securities, making them subject to strict policy regulations.

The first part of the process for Binance when creating its own Blockchain is to let go of Ethereum. Binance is not looking to be a direct competitor with Ethereum, their tokens will move from the second largest cryptocurrency to Binance Chain starting today and ending by the 22nd of the month. A major issue people are looking at is how BEP2 tokens will fair with current regulations.

Company token cost has been climbing consistently, leaving investors ecstatic with the results of a 5x rise in prices. Malta, the home of the company is known for supporting cryptocurrency, and positive regulations related to it. The rest of the world could have a problem with Binance however, particularly the US since the new blockchain will be listed as an exchange platform.

This means that the token cannot be described as a Virtual Token. Instead, the tokens are likely to be sold as Virtual Financial Assets, often subject to extreme scrutiny by the applicable authorities.

This leaves many to believe that Binance Coins will be viewed as securities. If under watch by the SEC, Binance Chain, the coins and investors are open to regulation by US Law, making the selling and engaging with the coins unavailable for everyday people without proper licenses. It’s not the first-time major coins have been under speculation by the SEC for their token type.

Ripple is still being reviewed and Ethereum has been determined not to be a security. If Binance can manage to get accepted at a VT rather than a VFA, it would mean investors would fair much better. Because Binance Chain will be an exchange platform, however, the SEC will probably call any issued tokens from it a security.

Binance Coin (BNB) Live Price

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