Binance is currently the largest exchange in the world in terms of the daily trading volume. It is incorporated in the Cayman Islands and has an office in Singapore. It, however, claims not to have a corporate headquarters. Recently, the company has faced regulatory issues in several countries, including the U.S., Hong Kong, and Malaysia. The crypto exchange has been making attempts to comply with global watchdogs. This includes making some recent hires to beef up its compliance and regulatory advisory team. Binance has reportedly grown its international compliance team and advisory board by 500% since 2020.
Dealing With Regulatory Issues Globally
Governments and financial regulators are paying closer attention to the cryptocurrency industry. Recently, they started making rules that pose a challenge for exchanges like Binance that have thrived in a mostly unregulated environment.
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In the last two months, Britain, Italy, and Hong Kong made clear their stance on Binance’s operations in the respective countries. They have said Binance does not have the authority to carry out a regulated activity in their markets. Malaysia’s financial regulator also criticized the crypto exchange for operating illegally in the country.
Related Reading | Crypto Exchange Binance Under Investigation by Department of Justice and IRS
As published in this Bloomberg article, Binance is under investigation by the Justice Department and Internal Revenue Service. The U.S. officials have expressed concerns. These include cryptocurrencies being used to conceal illegal transactions such as theft, drug deals, and tax evasion. “The U.S. Commodity Futures Trading Commission has also been investigating Binance over whether it permitted Americans to make illegal trades”.
Binance Hires U.S. Cybercrime Expert
The crypto exchange has hired Greg Monahan, former U.S. IRS investigator, in order to be more compliant with global regulations. “Binance said, on Wednesday it had appointed a former U.S. Treasury criminal investigator as its global money laundering reporting officer, part of an attempt by one of the world’s largest crypto exchanges to reinvent itself as a regulated financial firm” Hong Kong Reuters reported.
Total crypto market cap rises slightly to $1.9 Trillion | Source: Crypto Total Market Cap from TradingView.com
In a press release shared with CryptoPotato, it explained that Monahan has 30 years of experience in credit government service, with a large part being as a US Treasury Criminal Investigator. He was responsible for tax, money laundering, and other similar financial crime investigations. “Binance has a strong culture of putting their users first, from providing market-leading products to supporting high-profile investigations that help make the crypto industry a safer place,” Greg Monahan said in a statement. “My efforts will be focused on expanding Binance’s international anti-money laundering and investigation programs, as well as strengthening the organization’s relations with regulatory and law enforcement bodies worldwide”.
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Last month, the company’s CEO, Changpeng Zhao, said he wanted to improve relations with regulators. He also stated that the exchange would seek their approval and establish regional headquarters. Binance’s former global money laundering reporting officer, Karen Leong, who has held the position since 2018, will take up a new role as the Director of Compliance.
Featured image from Binance.com, Chart from TradingView.com