Major crypto exchange Binance to step up anti-money laundering checks

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FRANKFURT, Aug. 20 (Reuters) – Binance, the world’s largest cryptocurrency exchange, announced on Friday that it is putting in place tighter client controls for anti-money laundering requirements with immediate effect.

Binance has come under pressure in recent months from regulators around the world, concerned about the use of crypto to launder money and lax consumer protection.

The exchange has reduced its product offerings, including leveraged trading and equity-linked tokens, and said it wants to improve relations with regulators. [nL1N2PQ17U]

The Dutch central bank said on Monday that Binance was not in compliance with laws against money laundering and terrorist financing.

Binance said on its website that users should, with immediate effect, complete a verification process to access its products and services. Those who haven’t done so will only be able to withdraw funds, cancel orders and close positions.

Binance is in some ways the biggest platform in the world. Its transaction volumes in July were $ 455 million, down almost a third from the previous month in cooler crypto markets, but still No. 1 globally, according to data from CryptoCompare.

Binance’s corporate structure is opaque. Its holding company is registered in the Cayman Islands, according to UK court documents and the Malaysian securities regulator.

Reporting by Krisztian Sandor; written by Tom Wilson Editing by Rachel Armstrong

Our Standards: Thomson Reuters Trust Principles.

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