Crypto News

Crypto exchange Binance executives have allegedly neglected compliance responsibilities: report

According to Reuters, top crypto exchange Binance is sticking to weak know-your-customer (KYC) compliance standards despite warnings from company leaders.
In a new special report, the news service breaks down the exchange’s alleged regulatory volatility, while detailing Binance’s “weak” KYC checks aimed at preventing money laundering.

The article, which is based on “dozens of interviews with former Binance executives, advisors and business partners” and hundreds of documents, also claims that Binance has dodged questions about the location of its main online exchange.

In July, Binance CEO Changpeng Zhao said he had decided to move Binance away from its decentralized structure in order to appease regulators and obtain licensing approval, while several jurisdictions including the US, Hong Kong, Japan and Singapore were seeking licensing approval was granted. The company has reportedly expressed some interest in Ireland, although to what extent remains unclear.

An internal company document shows that Binance is also not following recommendations from its own compliance department and continues to recruit clients in Russia, Ukraine and five other countries deemed to be at “extreme” risk of money laundering, Reuters reports.

Binance did not respond to detailed questions from Reuters, but the exchange provided the following quote:

“As a leading cryptocurrency and Blockchainecosystem, we are both leading and investing in the future technologies and legislation that will put the crypto industry on the path to becoming a well-regulated, secure industry.”

A Binance spokesman also claimed that the information from Reuters is “completely outdated and — in several places — flatly incorrect,” but the spokesman did not go into detail.

Changpeng Zhao says on Twitter:

“FUD [Fear, uncertainty, doubt]. Journalists speaking to people fired from Binance and affiliates who didn’t work have tried to smear us.

We focus on anti-money laundering, transparent and welcome regulation. Actions speak louder than words. Thank you for your unwavering support!”
Check the price action

Source: Crypto News Deutsch

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button