The United States Department of Justice (DOJ) is nearing completion of its investigation into cryptocurrency exchange Binance, which began in 2018. A Reuters report suggests that there is a conflict between US prosecutors over whether or not the evidence gathered is enough to bring criminal charges against the cryptocurrency exchange and its executive.
The 2018 investigation revolves around Binance’s compliance with US anti-money laundering (AML) laws and sanctions. US prosecutors were investigating charges related to money transmission without a license, money laundering conspiracy and criminal sanctions violations.
The report noted that Binance’s defense attorneys had held meetings in recent months with Justice Department officials and argued against any criminal proceedings.
Binance claimed that any criminal proceedings against it could wreak havoc on the cryptocurrency industry amid a prolonged market downturn.. The report claimed the talks included potential plea deals.
A Binance spokesperson told Cointelegraph that the Reuters report suggests that regulators are doing an “overall review of all cryptocurrency companies against many of the same issues,” adding:
“This nascent industry has grown rapidly, and Binance has demonstrated its commitment to security and compliance through significant investments in our team, as well as the tools and technology we use to detect and deter illegal activity.”
Binance launched the dedicated cryptocurrency exchange for US clients in July 2017, due to tough regulatory requirements to offer services in the US. However, the 2018 investigation a year after its launch hampered the exchange’s progress in the United States.
Another report published by Reuters in June earlier this year accused the cryptocurrency exchange of being a hot spot for money launderers. Binance refuted all of these claims, suggesting that the report had curated data.
Binance’s struggle with compliance is nothing new, as the exchange has faced numerous warnings over the years from multiple jurisdictions. However, the exchange has managed to overcome compliance issues in many of those countries, with the exception of the US, despite its large number of hires to strengthen its regulatory and compliance team.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.
