The Cayman Islands Monetary Authority (CIMA) claimed that the regulator does not license Binance to operate a crypto exchange business from or within the Islands.

The Cayman Islands regulator is investigating Binance, Binance Group, and Binance Holdings Limited for not being registered, licensed, regulated, or otherwise authorized by the Cayman Islands or within the Cayman Islands to operate cryptocurrency exchanges.

Binance responded to the media that Binance has entities incorporated under the laws of the Cayman Islands and engages in activities permitted by law unrelated to cryptocurrency trading activities.