Let the accused enter – Last January, Reuters accused Binance Information Withholding and Laxity Leading to Money Laundering. This month, the Anglo-Saxon press agency repeats and develops. Binance is accused of wanting to isolate yourself regulators, for example i prior his documents, but the list doesn’t stop there. The world’s leading crypto exchange is once again in the spotlight. What is accusations from Reuters, what are they based on and what does Changpeng Zhao, CEO of Binance, answer?
Binance accused of wanting to avoid US regulators
In its article on October 17, Reuters recalls the investigation started in early September 2021 by the US Department of Justice. A study regarding money laundering require sharing of detailed documents on Binance policiesas well as on the conduct of its CEO and its leaders. A month later, the Reuters report is clear: Binance is accused of wanting to keep remote controls. 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 have control, making it one subsidiary company.
Also according to Reuters, min 2022half of Binance’s compliance team reportedly quit. This wave of departures would follow the arrival of a manager who pushed onacceleration of recordings new users. A gain in speed, but a decrease in security level makes the potential easier money laundering in this wallet representing more than 50% of world trade. This episode comes as the US Department of Justice is also investigating a potential breach of bank secrecy by Binance.
>> Keep your cryptocurrencies safe by storing them on a Ledger wallet (commercial link) <
Binance would bypass US and UK: backdating and money laundering
Similarly, Reuters accuses Binance of wanting to circumvent FCA regulation. To avoid an inspection by the English regulators, the stock exchange would have backdated a document. By using this process illegalthe company would not have had to submit to one regulatory review. Faced with this plan presented by a manager, Zhao would have replied “I agree”.
Reuters recalls that at the beginning of the year it would be like this 2.35 billion dollars who would have been laundered via this wallet. The consequence of explosive growth supported by weak control and one concealment of information to regulators. Similarly, in August 2021, after a strengthening of its control, it would be 29 million dollars which was allegedly removed illegally. A not inconsiderable move, since it would have been made by Wallex & Sarmayexscholarships Iranian. Iran is under severe US restrictions.
Other criticisms have been leveled management by Zhao: a race for growth that would voluntarily override certain societal issues such as regulation. There is also criticism of the company’s lack of transparency Location of its headquarters and about the Tai-Chi defense project aimed at conservation access to the American market. The newspaper also criticized 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 all have declined to comment Reuters article. In June last year, the FCA communicated about Binance’s failure to provide regulated services.
Zhao Changpeng defended himself by recalling that the company invested heavily in compliance, but that efforts were always close at hand. to chase.
He also remembers that Binance is the first crypto exchange to implement KYC. Binance encourages their implementation for all its competitors. He criticized the lack of detail in Reuters’ calculations, saying that if 2.35 billion money laundering, this concerns only 0.1% of total asset trades, which would make the platform the “most effective institution to keep illicit funds off the platform”.
Regarding the Taï Chi plan, he remembers never get it set up. So is his management own and works, even if it would be caricatured by the newspaper. Finally, his offices would be so discreet for the sake of securityand he pays his employees as he wishes, as the law allows him.
“I realize 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 exchange of anti-regulatory or even illegal behavior, based on harmful and mysterious management. What the company defends by claiming that it bends and that it values the said legislation worldwide. Binance is accused and defending itself, despite the fact that the company is doing well, as it still recently offered to participate in the purchase of twitter by Elon Musk on October 11.
Want to regain control of your hard-earned cryptos? Don’t leave your tokens lying around anywhere! To keep them safe, invest in a Ledger keyworld leader in personal wallets (commercial link).