Let the accused enter – Last January, Reuters accused Binance Information Withholding and Laxity Leading to Money Laundering. This month, the Anglo-Saxon press agency reiterates and develops. Binance is accused of wanting isolate oneself regulators, for example in predating his documents, but the list does not stop there. The world’s leading crypto exchange is once again in the spotlight. What are the accusations from Reuters, what are they based on and what is Changpeng Zhao, CEO of Binance, answering?
Binance accused of wanting to avoid US regulators
In his article of October 17, Reuters recalls the investigation started in early September 2021 by the US Department of Justice. A survey for money laundering requiring the sharing of detailed documents on the Binance Policiesas well as on the behavior of its CEO and its executives. A month later, the Reuters report is clear: Binance is accused of wanting to keep remote controllers. Binance would have created a US exchange to distance lawmakers from the main platform. According to Binance, this US entity would be independent, but according to Reuters, Zhao would hold control, making it a subsidiary company.
Also according to Reuters, mid 2022half of Binance’s compliance team reportedly resigned. This departure wave would follow the arrival of a manager who pushed foracceleration of recordings new users. A gain in speed, but a drop in the level of security making the potential easier money laundering within this purse representing more than 50% of world trade. This episode comes as the US Department of Justice is also investigating a potential breach of banking secrecy by Binance.
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Binance would bypass US and Great Britain: backdating and laundering
Similarly, Reuters accuses Binance of wanting to circumvent FCA regulation. To avoid a control of the English regulators, the exchange would have backdated a document. By using this process illegalthe company would not have needed to submit to a regulatory review. Faced with this plan presented by an executive, Zhao would have replied “I agree with that”.
Reuters recalls that at the beginning of the year it would be like this $2.35 billion who would have been laundered via this purse. The consequence of explosive growth supported by weak controls and an concealment of information to regulators. In the same way in August 2021, after a reinforcement of its controls, it would be $29 million who were allegedly illegally removed. A not insignificant move since it would have been made by Wallex & Sarmayexscholarships iranian. Iran is under severe US restrictions.
Other criticisms have been leveled at the management of Zhao: a race for growth that would voluntarily set aside certain societal issues such as regulation. Criticism is also made of the opacity of the company on the location of its headquarters, and on the Tai-Chi defense project aimed at preservation access to the US market. The newspaper also criticized the payment of its employees in Binance coin (BNB).
Binance CEO Defends Himself Against Accusations, Authorities Silence
The Financial Conduct Authority, the US Department of Justice and other involved regulators have all declined to comment Reuters article. Last June, the FCA communicated on the Binance’s lack of authorization to provide regulated services.
Zhao Changpeng is defended recalling that the company was investing heavily in compliance, but that efforts were always at to chase.
Also, he recalls that Binance is the first crypto-exchange to have implemented the KYC. Binance encourages their implementation for all of its competitors. He criticized the lack of detail in Reuters’ calculations saying that if 2.35 billion money laundering there is, this only concerns 0.1% of total asset trades, which would make the platform the “most effective institution for keeping illicit funds off the platform”.
Concerning the Taï Chi plan, he recalls never have it set up. Also, his leadership is own and works, although it would be caricatured by the newspaper. Eventually, his offices would be so discreet for reasons of securityand he pays his employees as he wishes, as the law allows him.
“I realize that not everyone will like my approach, but it works for us. »
Binance CEO Zhao Changpeng on his leadership
Reuters therefore accuses the world’s largest crypto-stock exchange of anti-regulatory or even illicit behavior, based on harmful and mysterious management. What the company defends itself by arguing that it bends and that it values the said legislation throughout the world. Binance is accused and defends itself, notwithstanding the company is doing well since it still recently offered to participate in the purchase of twitter by Elon Musk on October 11.
Binance has now reached a sufficient critical size to be able to return blow after blow in this kind of skirmish over bitcoin conquest funds internationally. To register on the exchange and form your own opinion, it’s this way (commercial link).