The top online news reporting site, Bloomberg, has revealed that India’s financial regulatory body has launched an investigation into the world’s leading cryptocurrency exchange, Binance. India’s financial watchdog is accusing Binance of contravening anti-money laundering rules through betting apps.
Binance Issues Have No End In Sight
Indian financial regulators claim that these apps have generated a combined $135 million in less than 12 months. Most of these earnings were laundered through an India-based crypto exchange, WazirX. Binance has been battling with various financial regulatory agencies all over the world in recent times.
Also, its India-owned exchange, WazirX, is already being investigated by the authorities over a myriad of charges. Bloomberg further revealed that Binance executives would also be subject to questioning by India’s regulatory body. But none of the executives are yet to respond to the body’s notice of invitation.
Bloomberg’s Binance announcement. Source: Twitter
As widely reported, Binance, which claimed to be a decentralized exchange, has been under investigation by various authorities like Italy, the UK, and the US. It has been accused of multiple charges such as terrorism, fraud, money laundering, and drug trafficking.
Private sources reveal to Bloomberg that owners of the betting apps are using WazirX to launder earnings to Binance. One possible reason for Binance’s hot mess is that it doesn’t make its KYC documentation mandatory for intending or current users. Hence, anyone can use the platform for illicit financial transactions.
Malaysia Shut Down Binance Operations
Malaysia securities commission has issued legal action against Binance exchange, including its subsidiaries – Binance digital, Binance UAB, and Binance Asia. Malaysia financial regulators have ordered that Binance and its previously mentioned subsidiaries shut down operations by August 8.
The exchange has also been barred from promoting any of its products/services through the media. Malaysia securities commission (MSC) accuses Binance of running an illegal exchange outfit, a gross violation of the country’s capital markets and services act 2007.
Any crypto exchange that intends to operate legally is mandated to register as a recognized market operator (RMO) with the security commission. Part of the MSC warning to Malaysians read thus, “crypto investors are strongly urged to close and cease operating any transaction with Binance from henceforth.”
This legal action comes more than a year after the MSC released its 2020 investor alert in which it indicted the top exchange of operating illegally in the country. Apart from Malaysia, Binance has also been battling with operations issues in other Asian countries like Singapore, Hong Kong, and the Philippines.
Binance has taken some steps to address some of these issues. It has introduced a tax tool, stopped token stock trading, and limits daily withdrawal amounts for unverified users. Also, European users are no longer allowed to trade crypto derivatives, another Binance attempt at complying with crypto regulations in European member nations. Yet, the popular exchange isn’t taking any proactive steps in having an operating license in any of these countries where it is alleged not to have one.
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