The world’s largest cryptocurrency exchange, Binance has added another charge to its increasing regulatory woes with a criminal complaint from Thailand’s Securities and Exchange Commission(SEC). The regulatory body has accused Binance of operating without a license while asserting that the company failed to reply to an earlier warning.

Thailand SEC Takes Legal Action Against Binance

In a complaint registered with the Economic Crime Suppression Division of the Royal Thai Police (ECD), the SEC alleged that it had issued a warning letter to Binance in April. Within the letter, the exchange was asked to submit a written explanation for its unauthorized promotions on its Facebook account and website.

The SEC claimed that Binance had failed to respond to its warning before the specified deadline, which meant that it’s operating as an unlicensed crypto business in the country. Furthermore, the securities regulator explained:

“Only providers who have obtained relevant licenses under the law are allowed to provide services related to digital asset trading, exchange, depository, transfer, withdrawal or any transactions related to digital assets.”

As per regulations, violators of sections 26 and 66 of the Digital Asset Businesses Decree could be imprisoned for two to five years with a penalty of 200,000-500,000 baht. Additionally, the perpetrators can be charged 10,000 baht for each day as the violation continues.

Binance’s Troubles Pile Up as Regulatory Pressure Increases

Opinions on SEC’s latest initiative are divided in Thailand, with some suggesting that traders must decide whether they continue to deal with the platform. Meanwhile, others are supportive of restrictions and feel crypto traders must avoid participating on illegal platforms.

Developments in Thailand represent another blow for Binance, which has been struggling amid an increase in regulatory pressure. The exchange has reportedly received similar warnings from Japan and Cayman Islands. It was also barred in the UK by the Financial Conduct Authority and forced to pull out of Ontario, Canada after failing to comply with local regulations. The exchange is also facing an ongoing probe from the US Justice Department and Internal revenue Service(IRS) for money laundering and tax evasion.