Binance Admits to Expected Penalties to Resolve US Probes
TECHDIGEST– Binance, the largest cryptocurrency exchange in the world, is facing regulatory probes in multiple jurisdictions, including the US. Despite initially denying any investigations, a top executive has now admitted that Binance expects to pay monetary penalties to settle probes into its US business.
Binance’s Chief Strategy Officer, Patrick Hillmann, said that the company’s executives were unfamiliar with laws and rules written surrounding bribery, corruption, and money laundering.
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Hillmann also acknowledged that Binance is “working with regulators to figure out what are the remediations we have to go through now to make amends for that.”
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The outcome of these remediations could result in fines or even more severe penalties. This admission by Binance is a significant reversal from their previous stance of disputing any reports of investigations and publicly mocking media outlets that reported otherwise.
Binance has been under investigation by the U.S. Department of Justice since 2018 over any lapses in compliance with anti-money laundering laws and sanctions. The SEC has also informed Paxos, which issues BUSD stablecoin for Binance, that it plans to take action against the firm over such issuance. Earlier this week, Paxos announced that it had stopped issuing new BUSD tokens at the direction of the New York Department of Financial Services.
These regulatory probes and actions against Binance and its associated companies are indications that things are not going well for the firm. As a result, Binance is now changing its approach and appears to be cooperating with regulators to address its legal issues.
