![]() Crypto exchange execs already stung by Bank Secrecy Act ![]() The spokesperson did not comment on whether it is being investigated for violating the Bank Secrecy Act. “We work with agencies regularly to address any outstanding questions.” ”As has been well documented, regulators across the globe are reaching out to every major crypto exchange to better understand our industry,” the representative added. Though Binance.US registered with the US Treasury Department in 2019, Binance’s flagship platform did not, according to Reuters.Ī Binance spokesperson told Blockworks in an email that the company has a global security and compliance team with more than 500 people, including former regulators and law enforcement agents. The Bank Secrecy Act, passed in 1970, established program, recordkeeping and reporting requirements for national banks, federal savings associations, federal branches and agencies of foreign banks, particularly around combating money laundering.Ĭrypto exchanges fall under the scope of the Bank Secrecy Act too. The 2020 letter reportedly made nearly 30 requests for documents that included details of Binance’s policies to combat illegal finance, or reports of suspicious financial activity it had filed to authorities, among other matters. The Justice Department’s money laundering unit asked the world’s largest crypto exchange nearly two years ago to hand over messages from CEO Changpeng Zhao and other executives on matters including its detection of illegal transactions and US customer recruitment, according to the report. US authorities have an ongoing investigation into whether Binance violated the Bank Secrecy Act, Reuters reported Thursday, after federal prosecutors began probing the company and its CEO in December 2020. “We work with agencies regularly to address any outstanding questions,” Binance spokesperson said.The Bank Secrecy Act is mostly concerned with anti-money laundering controls.In June, Bloomberg published a lengthy profile of Richard Teng, a fast-rising Binance executive with experience, describing him as the “heir apparent” to Zhao as the company mulled succession options.īut so far, Zhao, a nomadic technology genius fluent in both Western and Asian culture, has given no indication he’s prepared to step aside.īinance remains by far the biggest cryptocurrency exchange in the world, but in recent months its market share has started to slide, likely as a result of the regulatory pressure and on the decision by banks in the U.S., Europe, and elsewhere to cut off the company’s access to fiat currency. investigations-along with others in Europe, Australia, and elsewhere-have given rise to rumors that Zhao might step aside as part of an effort to help Binance weather the regulatory storm. regulators as well as alleged money laundering and sanctions violations on the company’s platform.īinance is already the subject of serious regulatory lawsuits filed by the Securities and Exchange Commission and the Commodity Futures Trading Commission, and rumors have swirled that a criminal complaint by the Justice Department against both the company and Zhao are imminent. ![]() Several outlets have reported that the investigation, underway for more than a year, relates to Binance’s alleged attempts to bamboozle U.S. According to a person at Binance familiar with the situation, the executives chose to depart over Zhao’s response to an ongoing investigation by the Department of Justice.
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