Binance CSO view
Major crypto asset (virtual currency) exchange Binance may agree to pay fines to U.S. regulators as a plea bargain, it was revealed on the 15th.
It seems that the main point of contention is compliance violations at the early stage of establishment. In an interview with the WSJ, Binance Chief Strategy Officer Patrick Hillmann said the following about the early stages of the project:
Binance has grown rapidly and started as a business run by software engineers unfamiliar with the laws and regulations that dealt with the risks of bribery, corruption, money laundering and economic sanctions.
Hillmann said the company has been coordinating with U.S. regulators, which could result in “perhaps fines or more action as determined by regulators.”
Hillmann did not specify the size of the fine or when it would be resolved, but said he was “highly confident and happy with the direction of the discussion” about the outcome. “It’s going to be a positive moment for the company in that we can put the problem in the past,” he said.
On February 13, the SEC (U.S. Securities and Exchange Commission) ordered Paxos National Trust (Paxos Trust Company) to suspend new issuance of the Binance-branded stablecoin Binance USD (BUSD).
In light of the regulatory action on BUSD, Hillmann noted that the U.S. regulatory environment for the cryptocurrency market is “still in a very turbulent time.” The recent SEC enforcement “will have a very serious and long-lasting chilling effect on the United States,” he added.
connection:New York authorities order Paxos to stop issuing new stablecoin BUSD
Regulators Investigating Binance
Although Hillmann did not mention it directly, the WSJ cited previous coverage of DOJ, CFTC and Binance.
The U.S. Department of Justice has been investigating Binance since 2018 for possible violations of anti-money laundering and sanctions laws, Reuters reported in December 2022.
At the time, Binance called the Reuters report “Fear, Uncertainty and Doubt” (FUD), and now has an investigative team of about 300 people that is cracking down on criminal activity more than traditional cash systems. It was appealing to users about the management system by keeping it low.
connection:Binance Rebuts Reports of US Department of Justice Money Laundering Complaints
The CFTC was reported by Bloomberg in March 2021, citing sources familiar with the matter. It said it was investigating allegations that Binance offered crypto derivatives trading to U.S. customers without proper registration.
What is money laundering
Concealing the source of criminal proceeds. Due to its high anonymity, countermeasures against money laundering of cryptocurrencies are considered one of the top priorities.
connection:Binance Receives Preliminary License from Kazakhstan Regulator
Binance originally launched a China-based, globally operating cryptocurrency exchange in July 2017. In recent years, it has been striving to expand its business globally in compliance with regulations.
In 2019, it launched Binance US, a cryptocurrency service provider in the United States. Our US headquarters are in California, where we comply with California regulations and serve US citizens.
In August 2010, it obtained an In-Principle license from Kazakhstan’s financial regulator, the Astana Financial Services Authority (AFSA). In 2022, it also obtained business licenses in Nigeria, France, Italy, Spain and even New Zealand.
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connection:What is the world’s largest virtual currency exchange, Binance?