Binance Partners With Law Enforcement Agencies To Prevent Money Laundering

Key Points:

• Binance announced a partnership with law enforcement agencies to launch an anti-money laundering campaign.
• The move follows a successful trial with the Hong Kong Police Force.
• The aggressive action by the world’s largest exchange comes while it is under the scrutiny of US law enforcement agencies.

In an official statement on Binance blog, the largest cryptocurrency exchange has announced joint work with law enforcement agencies to prevent money laundering.

The exchange started the campaign in Hong Kong. They worked with the local police force to craft a targeted crime prevention and warning message, including helpful tips, examples of the most popular scams, and related resources and contacts.

This notice is sent to users in Hong Kong when they initiate a withdrawal on Binance.

In the first four weeks since the launch, about 20.4% of users have reviewed withdrawals or considered whether the transaction carries a risk of fraud.

The project has received vital positive feedback from the community. With a small but impactful tweak, the exchange has achieved a marked improvement in safety without affecting the user experience.

Going forward, the exchange said it is looking to work with law enforcement agencies in other regions as it continues to promote its anti-fraud program.

The positive action comes as Binance is under scrutiny from US law enforcement agencies who consider Binance to be a hotbed of illegal activities. The allegations claim that many of the tokens listed on the exchange are unregistered securities.

Additionally, Forbes’s article published in late February alleges that Binance embezzled $1.8 billion from customers between August 17 and early December 2022. Forbes says Binance has been quietly stolen and transferred $1.8 billion in deposits “as collateral to support customer stablecoins,” leaving many of their users unsecured.

However, soon after, the exchange attached the above information to be untrue. A company spokesperson assured that the transactions are part of their internal payment process and do not affect the collateralization of users’ assets.

Therefore, the fact that Binance actively participates in anti-money laundering actions is also one of the essential moves in denying FUD.

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