Crypto Exchange Binance Executives Allegedly Neglected Compliance Responsibilities: Report

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Major crypto exchange Binance is reportedly maintaining low know-your-customer (KYC) compliance standards despite warnings from senior company officials, according to Reuters.

In a new special report, the news service breaks down the exchange’s alleged regulatory tweak, zeroing in on Binance’s “weak” KYC controls, which are designed to prevent money laundering.

The article, based on “dozens of interviews with former senior Binance executives, advisers, and business partners,” as well as hundreds of documents, also alleges that Binance evaded questions about the location of its principal. online exchange.

In July, Binance CEO Changpeng Zhao said he had decided to pull Binance away from its decentralized setup in a bid to appease regulators and win licensing approvals amid a crackdown in several jurisdictions, including the United States, Hong Kong, Japan and Singapore. The company has reportedly shown some interest in Ireland, but to what extent that remains unclear.

An internal company document indicates that Binance also did not follow the recommendations of its own compliance department and continued to recruit customers in Russia, Ukraine and five other countries considered to be at extreme risk of corruption. money laundering, reports Reuters.

Binance did not respond to detailed questions from Reuters, but the exchange provided the following quote:

As the leading cryptocurrency and blockchain ecosystem, we lead and invest in future technologies and legislation that will put the crypto industry on the path to becoming a well-regulated and secure industry.

A Binance spokesperson also claimed that the information from Reuters was extremely outdated and in several places downright incorrect, but the spokesperson did not go into detail.

Changpeng Zhao said on Twitter,

“ALL [Fear, uncertainty, doubt]. Journalists chatting with people who got fired from Binance and partners who failed trying to smear us.

We focus on anti-money laundering, transparent and welcome regulation. Actions speak louder than words. Thank you for your unwavering support!”

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