In a recent social media post, Binance has issued a cease and desist order to a fraudulent company called Binance Ltd, which is wrongly claiming an affiliation with the popular cryptocurrency exchange. Surprisingly, this is the second occurrence within a week where Binance has had to fend off a scam company using its name to deceive investors.
Binance Ltd, which is based in the small rural town of Mildenhall in Suffolk, is the main focus of this recent scam. Interestingly, its registered address is associated with a company called OfficeServ, a temporary address provider. This has led to the company sharing the same address with over 2,400 other firms. With incidences like these, it raises the question of what is the real purpose of registered offices.
While registered offices do play a crucial role in legal and administrative matters, it’s important not to overlook the fact that they may sometimes serve as a hiding place for scam operations, seeking to appear more legitimate. And yet, the same registered office addresses can, on the other hand, benefit genuine companies searching for tax benefits or legal necessities.
To help differentiate legitimate business operations from scams, due diligence is essential. This recent incident involving Binance highlights the lengths to which scammers will go to profit from the thriving crypto space. Despite being hampered by people with nefarious intentions, the blockchain and cryptocurrency sector continues to expand rapidly, with investors and enthusiasts alike contributing to its growth.
When it comes to the United Kingdom, Binance has had its fair share of regulatory concerns. Just recently, Binance Markets Limited (BML), a subsidiary of the exchange, revoked its permissions with the Financial Conduct Authority (FCA) in the country. This affects its non-crypto related services, and in the UK, the Binance Group is not authorized to conduct any regulated business.
In conclusion, while the cease and desist orders issued by Binance demonstrate the company’s commitment to fighting against fraudulent entities, it also emphasizes the need for continuous awareness and caution when navigating the crypto landscape. As scammers become more sophisticated, it’s crucial that both individuals and businesses take due care in their involvement in the exciting world of cryptocurrencies.
Source: Decrypt
