Binance Will Pay Fines To Solve US Investigations Since 2018
- The world’s leading cryptocurrency exchange Binance said it would accept fines to resolve investigations being carried out by US authorities.
- Binance Chief Strategy Officer Patrick Hillmann stated that the company had grown so rapidly that it could not be fully aware of US regulations and laws.
- Hillmann is confident that the possibility of reconciliation with the US government is high.
The chief strategy officer of Binance, the biggest cryptocurrency exchange in the world, said in an interview that the company anticipates paying fines to resolve ongoing regulatory and law enforcement inquiries into its operations in the United States.
Binance Chief Strategy Officer Patrick Hillmann told the WSJ that the company’s leaders were not aware of the laws and regulations pertaining to bribery, corruption, and money laundering, which appears to be an admission of breaching the law.
As a result, according to Hillman, Binance anticipates paying penalties for prior infractions and is “working with regulators to figure out what are the remediations we have to go through now to make amends for that.” The consequence might range from “like a fine” to “could be more.”
One of several significant exchanges under investigation in the US for their cryptocurrency services is Binance. The exchange, which doesn’t have a headquarters worldwide, started operating in China in 2017. After China outlawed cryptocurrency exchanges, its leadership staff, including founder and CEO Changpeng Zhao, spent time there. According to Hillmann, US traders are not now able to use Binance.
The US Attorney’s Office for the Western District of Washington has been looking into Binance since at least 2018, according to Reuters, even though regulatory attention has increased after the collapse of its rival FTX in November. At least two trading companies have allegedly received subpoenas from the Department of Justice (DOJ) in recent months asking for records of their prior interactions with Binance US.
Reuters was “wrong again,” according to Binance, and the publication was “attacking our law enforcement team, a team that we’re incredibly proud of.” Binance openly refuted the allegation.
Hillmann stated that he was unable to predict the number of fines or the potential timeline for Binance and US authorities to come to an agreement but added that the exchange is “highly confident and feeling really good about where those discussions are going.”
“It will be a good moment for our company because it allows us to put it behind us,” Hillmann said.
Binance has changed its strategy as it becomes increasingly clear to the public that not everything is going well for the company. Paxos, the company that creates BUSD stablecoin for Binance, has been informed by the SEC that legal action would be taken against it for this issuance.
The New York Department of Financial Services instructed Paxos to halt releasing new BUSD coins earlier this week, according to a statement from Paxos.
One of the largest US exchanges, Kraken, agreed last week to settle a civil inquiry into its staking investment program by paying the SEC $30 million in fines. While refusing to accept or deny wrongdoing, Kraken has decided to discontinue providing staking to US consumers.
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