The U.S DOJ is currently examining the documents of Binance. The report also added that their CEO, Changpeng Zhao, and 12 top administrators are being scrutinized.
DOJ Requested For Binance Documents
Reuters says, the U.S DOJ, through a letter, asked Binance for their internal documents. This was meant for anti-money laundering inspections.
Further, the report explains that the department needed these files to evaluate the recruitment process for users, and measures laid down to discover dubious trades.
Also, the inquiry was to review if the digital platform complies with the Bank Secrecy Act, established to avoid illegal gains in the economic sector. The investigation was also meant to detect if the company is breaching the U.S financial crime laws, or not. However, their response to these requests is still unknown.
Patrick Hillman, representing Binance, in his statement, admitted that authorities worldwide are studying big digital platforms, to know more about the industry.
U.S. Cryptocurrency Inspection
In the U.S, digital assets platforms have been under rising supervision. Many top officials are asking for laws in the digital world. Janet Yellen, the Treasury Secretary recently declared she is in support of more control of cryptocurrencies.
Consequently, the DOJ in the quest to curb the rising tech-related crimes, created National Cryptocurrency Enforcement in February, with digital platforms as their primary target.
Also, the founder of BitMEX, a digital platform was convicted to over 2 years probation, after confessing the breaching the Banks Secrecy Act. The digital platform was also fined $100M. BitMEX presently ensures it complies with all related laws.
Following this, the DOJ sent a letter to Binance Holdings Ltd. The letter was also addressed to their legal representative, Roberto Gonzalez, a member of Paul, Weiss law firm. Both the firm and the attorney failed to reply.
Legal findings also show Binance brand belongs to Binance holdings. The papers also reveal Zhao is the owner of the organization.
Binance refuses to disclose the whereabouts of Binance.com. The organization hides the identity of its owner. They have failed to recruit any U.S users directly. They are redirected to Binance.US, their branch in the country.
Although Binance.US is enrolled with the Treasury, Binance.com failed to enroll. Legal papers however indicate Zhao regulates Binance.US.
Over 12 financial authorities have sanctioned Binance globally. They are either accused of breaching money-related rules or rendering services unlicensed. The Netherlands’ central bank fined Binance 3 million euros for violating their financial crime laws in July.
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