Binance expects to finally resolve ongoing inquiries into its operations as regulatory scrutiny of the cryptocurrency industry in the U.S. increases. Chief Strategy Officer Patrick Hillmann claims that most software engineers who contributed to the exchange’s growth needed to be made aware of the laws and regulations governing bribery, corruption, and money laundering.
According to Hillmann in an interview with the Wall Street Journal, this caused holes in Binance’s compliance efforts, which the company is now attempting to close by “working with regulators to figure out what are the remediations we have to go through.”
He claims that while sanctions will probably arise from this, the final cost may be more. “We just don’t know. That is for regulators to decide,” said Hillmann, adding that the exchange is still “highly confident and feeling really good about where those discussions are going.”
Before the CFTC launched a separate investigation into Binance, the Federal Revenue Service began its own probe
Binance has a lengthy history of regulatory issues in the United States.
The New York Attorney General’s office initially referred the company to the New York State Department of Financial Services in 2018 for a potential violation of New York’s virtual currency legislation because the exchange has never registered itself in the nation. The Commodities Futures Trading Commission (CFTC) launched an investigation in March 2021 to determine if the exchange had improperly permitted U.S. citizens to utilise the service.
According to reports, the Department of Justice (DOJ) and the Internal Revenue Agency conducted their own investigation before the CFTC opened a separate inquiry against Binance in September 2021 about allegations of insider trading.
The cryptocurrency firm is working with regulators
With the FTX crash last year, Binance came under further regulatory pressure as the US was allegedly considering charging the exchange and several of its leaders, including CEO Changpeng “CZ” Zhao, with crimes.
The alleged offences are connected to a 2018 investigation into Binance’s adherence to anti-money laundering regulations and penalties. Although it’s difficult to predict the number of fines or when the exchange would come to a conclusion, according to Hillmann, “it will be a good moment for our company because it allows us to put it behind us.”
The NYDFS ordered Paxos, the company that creates the Binance USD (BUSD) stablecoin, to stop creating BUSD and “terminate its connection” with the cryptocurrency exchange earlier this week, which caused further problems for Binance. “Binance is working with regulators to figure out what are the remediations we have to go through now to make amends for that,” he was quoted as saying in the report.