Reuters: Binance was withholding information from regulators, repeatedly shunned own compliance department



In a report printed on Friday, Reuters laid out the findings of its investigation into the regulatory compliance practices of Binance, the world’s largest cryptocurrency change by buying and selling quantity.

The authors recommend the existence of a recurring sample whereby the corporate’s CEO Changpeng Zhao, whereas proclaiming its openness to authorities oversight, ran a corporation that systematically denied regulators’ requests for monetary and company construction information and shirked correct consumer background checks.

The reported findings are based mostly on the accounts of Binance’s former senior staff and advisers, in addition to the overview of paperwork resembling inner correspondence and confidential messages between a number of nationwide regulators and the corporate. According to the doc, a number of high-ranking staff have repeatedly raised considerations of weak Know Your Customer/Anti-Money Laundering (KYC/AML) requirements on the firm however have been ignored by the CEO.

Additionally, the corporate reportedly acted in opposition to the suggestions of its own compliance department when it continued onboarding new prospects from seven nations designated to be of maximum money-laundering threat.

The big-picture takeaway that the authors of the report provided is that the described sample of conduct allowed Binance to take care of ambiguous jurisdictional affiliation and opaque company construction whereas providing monetary merchandise that will usually require regulatory approval or licensing in a lot of its nations of operation.

In response to Reuters’ inquiry, the corporate spokesperson mentioned that the report’s findings have been based mostly on outdated or outright incorrect information. Binance CEO Changpeng Zhao later commented by way of Twitter saying:

As Cointelegraph reported, regardless of ongoing investigations into suspicious activity on its platform in a number of jurisdictions, Binance continues increasing into new markets, with the latest transfer tied to a possible deployment in Thailand.