Binance planner admitted breaking the rules since 2017, now in talks with US govt to improve compliance. US govt, Scrutinizing the exchange and other crypto companies to ensure proper operation. During an interview with The Wall Street Journal, Binance CSO Patrick Hillmann highlighted the exchange’s lapses in regulatory compliance.
He explained that the shortfalls mainly occurred while implementing the exchange’s security measures. And they involved rules relating to the Know Your Customer (KYC) protocol and Anti-Money Laundering (AML). The Binance planner stated that the company had resolved issues with its rules and security measures around two years after starting.
Patrick Hillmann said they had problems because they needed more people to ensure they followed the rules and kept their company safe. But now, they have hired more people to ensure they are doing everything right. He said that they made all the changes they needed to make.
Binance has hired more than 750 new people to work for them in the past two years. A new boss was hired at Binance to ensure compliance with all the rules. The new boss used to work for another company called Gemini named Noah Perlman.
The American government is investigating the exchange because they didn’t follow all the rules. US agencies, including the SEC, DOJ, CFTC, and IRS, are investigating Binance. They want to know how Binance operates and how much money they have made in recent years.
The US govt may require Binance to pay the penalty or take action
Patrick Hillmann said that the exchange is discussing with the government to find a solution. If they reach an agreement, the government won’t need to investigate Binance’s business in the US anymore. The government may require Binance to pay the penalty or take action to fix its mistake.
Hillman stated that Binance seeks to serve users while following rules and enhancing its website. CNBC reported another incident where New York finance authorities instructed Paxos to halt producing BUSD tokens utilized by the exchange. Although Paxos agreed to stop making new tokens, existing tickets remain functional.
This article conveys general information, and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.