Crypto exchange Binance faces US money laundering probe

Its turning out to be another duly eventful year for crypto. In the span of 5 months, meme currency Dogecoin has seen rates spike, PayPal has opened cryptocurrency trading and Tesla carried out a u-turn on Bitcoin payments. Including to the volatility, clashing reports claim the worlds largest cryptocurrency exchange, Binance, is under investigation by the US Department of Justice and the Internal Revenue Service (IRS)..
According to Bloomberg, officials interested in how crypto is being utilized for cash laundering inquired from those acquainted with Binances transactions. The publication did not validate whether the examinations were tied to criminal infractions, declaring that not all inquiries stem from “accusations of misbehavior.”.
Binances CEO Changpeng Zhao was quick to interject with his side of the story. Without explicitly naming the article, he tweeted that the “news” painted his company in a negative light. According to Zhao, Binance had actually “worked together with police to combat bad gamers,” adding that the story made that “appear like a bad thing.”.
The reality is the cryptocurrency exchange– which is banned from running in the US– has been fielding money laundering allegations for a while now. A recent report from blockchain forensics firm Chainalysis said Binance was a top destination for illicit cryptocurrency in 2019..
Regulators are also investigating whether Binance permitted Americans to make illegal trades, sources told Bloomberg. Bloomberg adds that Binance also previously recommended Americans to utilize a VPN to conceal their place when seeking access to its exchange.
The businesss entanglement with federal law enforcement shows up amid growing regulatory scrutiny of cryptocurrencies. The IRS has apparently been expanding its ability to track individuals who owe taxes based on cryptocurrency investments.
Binance was established in China, but was required to vacate the nation in the wake of a restriction on crypto trading in 2017. It is now included in the Cayman Islands, according to Bloomberg, a well-known tax haven used by corporations and the rich to conceal their finances.
The other day, the business released a declaration on Twitter asserting its compliance with United States laws. “We take our legal responsibilities very seriously and engage with regulators and police in a collaborative fashion,” Binance said. “We have worked tough to develop a robust compliance program that includes anti-money laundering principles and tools utilized by banks to discover and resolve suspicious activity.”.
The business continued: “We have a strong track record of helping law enforcement firms around the world, consisting of in the United States.” All products suggested by Engadget are selected by our editorial team, independent of our moms and dad business.

In the span of five months, meme currency Dogecoin has seen prices increase, PayPal has opened cryptocurrency trading and Tesla performed a u-turn on Bitcoin payments. Binances CEO Changpeng Zhao was fast to interject with his side of the story. Regulators are likewise investigating whether Binance permitted Americans to make prohibited trades, sources informed Bloomberg. Bloomberg adds that Binance likewise formerly advised Americans to utilize a VPN to conceal their place when seeking access to its exchange.
“We take our legal obligations really seriously and engage with regulators and law enforcement in a collective fashion,” Binance said.