Binance has faced compliance warnings from many countries, but it managed to overcome those shortcomings in most nations barring the U.S.
The investigation of cryptocurrency exchange Binance by the US Department of Justice (DOJ), which began in 2018, is almost over. According to a Reuters story, US prosecutors disagree over whether the accumulated evidence is sufficient to bring criminal charges against the cryptocurrency exchange and its leader.
The focus of the 2018 inquiry was Binance’s compliance with AML regulations and fines in the United States. U.S. authorities were looking into allegations of conspiracy to launder money, unauthorized money transmission, and criminal sanctions violations.
According to the article, Binance’s defense lawyers met with Justice Department representatives recently and advocated against taking legal action. During a protracted market downturn, Binance reportedly asserted that any legal action taken against them might have a disastrous effect on the cryptocurrency industry. A spokesperson for Binance said:
The negotiations allegedly covered prospective plea bargains, according to the report. The Reuters report suggests that regulators are conducting a “sweeping review of every crypto company against many of the same issues,” She added: “This nascent industry has grown quickly and Binance has shown its commitment to security and compliance through large investments in our team as well as the tools and technology we use to detect and deter illicit activity.”
Due to the strict regulatory requirements to provide services in the U.S., Binance opened the dedicated cryptocurrency exchange for American customers in July 2017. The inquiry in 2018—which was opened within a year of its launch—hindered the exchange’s development in the United States.
A different Reuters story from June of this year said that the cryptocurrency exchange was a popular location for money launderers. All of these statements were disputed by Binance, who asserted that the research used selective data.
Since the exchange has received countless warnings over the years from numerous jurisdictions, Binance’s struggles with compliance are nothing new. Nevertheless, after making numerous hires to bolster its regulatory and compliance team, the exchange has been able to resolve the compliance problems in many of those nations outside from the United States
