By George Ward
Over the past years, crypto exchanges have faced compliance issues in various countries. Among such exchanges is Binance, the largest crypto exchange firm by daily trading volume.
The US DoJ (Department of Justice) is wrapping up its investigation of the crypto exchange, Binance. The legal investigation began in 2018 and has barred the business from operating in the United States.
A Reuters report alleges a disagreement among American prosecutors regarding the matter. Some prosecutors argue that the evidence available is insufficient to charge Binance for possible criminal offenses.
However, another group believes the evidence is sufficient. The US 2018 investigation relates to Binance’s non-compliance with America’s AML rules and sanctions.
The charges the US prosecutors investigated were related to violations of US sanctions, money laundering conspiracy, and unlicensed money transmission. According to a Reuters report, the exchange’s defense attorneys allegedly met with officials of the DoJ in recent months.
They claimed that any unjustified legal proceedings could jeopardize the entire crypto industry. In addition, the report noted that the discussion between both parties included plea deals.
A Binance representative noted that financial watchdogs are investigating several crypto exchanges.
“The crypto industry has grown immensely in the past few years. Binance is committed to regulatory compliance and security. Moreover, the company has invested in its team, providing them with technology and tools to detect and prevent illegal activities,” a DoJ spokesperson added.
Binance Battles With Regulatory Compliance
A 2018 investigation affected the company’s success in the US a year after its launch. As a result, Binance stopped offering crypto services to United States citizens due to this investigation.
Nonetheless, this action led to the formation of Binance.US in 2019, a crypto exchange dedicated to American users. Meanwhile, it is noteworthy that both entities operate independently.
In June, a Reuters report accused Binance of laundering money using crypto. It also accused Binance of collaborating with North Korea’s Lazarus group, a famous hacker group.
However, Binance denied all claims. The crypto exchange noted that Reuters cherry-picked data to support its claims and had no facts.
Meanwhile, Binance has been struggling with compliance in several regions. As a result, the exchange has received warnings from several countries, notably Japan and the United Kingdom.
In August, the Philippines Securities Exchange Commission warned its citizens about doing business with Binance. According to the regulator, Binance did not have a license to operate in the country.
Notwithstanding, Binance has overcome regulatory compliance issues in some of these counties. The crypto exchange even created a compliance and regulatory team.