The world’s largest digital asset exchange, Binance Prepares to Face Fines and Penalties to Resolve Pending Regulatory and Law Enforcement Investigations in the United States.
According to a February 15 WSJ report citing the company’s chief strategy officer, Patrick Hillmann, Binance has been working with regulators to fix past compliance issues.
Hillmann stated that Binance is “working with regulators to find out what corrective actions we need to take now to fix that.”.
He added that the result of the ongoing investigations will probably be fines, but could be more, stating that “that will be decided by the regulators”.
Binance has been the subject of several investigations in the United States, including one that began in 2018. by the Department of Justice for possible violations of anti-money laundering laws.
In March 2021, The Commodity Futures Trading Commission also investigated whether the company offered crypto derivatives to US clients without registering with the agency..
The Securities and Exchange Commission also launched an investigation into Binance’s US division last February.regarding business companies connected to CEO Changpeng Zhao.
Hillmann added that Binance was “very confident and felt very good about the evolution of those conversations,” but could not provide a figure on the size of the fines or a timetable for resolution with US regulators..
Said the lack of clarity for cryptocurrencies in the United States made it a “very confusing time for us”.
The SEC has recently stepped up what industry watchers are calling a “war on cryptocurrency.”which appears to focus on certain staking and stablecoin services that it believes fall within the scope of securities law.
Referring to recent enforcement activity, the Binance executive said it would “have a really deep and long-lasting chilling effect in the United States”.
Earlier this week, the New York regulators cracked down on Paxos, preventing it from issuing more of the Binance-branded stablecoin BUSD.
Last week, US cryptocurrency exchange Kraken fined $30 million and ordered to discontinue staking services following SEC enforcement action.
Patrick Hillmann concluded that Resolving the issues with US regulators would be good for the company and its future.
“It will be a good time for our company because it allows us to put it behind us.”
Binance declined to offer additional comment on the matter.
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