World's largest Cryptocurrency exchange Binance is reportedly is under investigation by the US Justice Department and the IRS.
May 14, 2021, | AtoZ Markets – The Department of Justice (DoJ) and the US Internal Revenue Service (IRS) are conducting an investigation on the cryptocurrency exchange Binance, Bloomberg reports, citing unnamed sources.
According to the report, the authorities are checking the trading platform for violations in the field of anti-money laundering and tax laws. Sources said that Justice Department and IRS officials are requesting information "from individuals who understand Binance's business."
At the current stage, the exchange is not accused of violations and the process may not develop further.
Binance said in a comment to AtoZ Markets that they have a collaborative approach to working with regulators around the world and "take legal obligations very seriously." The exchange made a similar statement in response to the Bloomberg publication.
We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion. (1/3) https://t.co/68UB1InOBK— Binance (@binance) May 13, 2021
Binance CEO Changpeng Zhao called the post's title “bad”. According to him, it is about how the trading platform cooperates with law enforcement agencies "in the fight against bad players."
The "news" title is bad. Article itself isn't so bad actually (but who reads). It described how @binance collaborated with law enforcement agencies to fight bad players, but somehow made it look like a bad thing... ? Anyways. Back to work.— CZ ? Binance (@cz_binance) May 13, 2021
Over the past 24 hours, the cryptocurrency exchange Binance Coin token has lost 5.5%, according to CoinMarketCap. At the time of writing, the coin is trading at $591.
In March 2021, Bloomberg reported that the US Expedited Trade Commission had launched an investigation into Binance. Later, the company's legal adviser Max Baucus said there were no accusations from the department.
That same month, the exchange hired ex- FATF executives as compliance and regulatory advisors.
In April, Brian Brooks, the former head of the Office of the Comptroller of the Currency of the US Treasury Department, became the head of the company's US subsidiary.
Recall that European regulators have begun to study Binance's compliance with the rules of transparency and disclosure of corporate information when launching trading in tokenized shares.
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