Binance prepared for penalties to end US investigations, details inside
Leading crypto exchange Binance is preparing to face penalties in order to resolve outstanding regulatory and law enforcement investigations in the United States.
On 15 February, the Washington Post reported that Binance has been working with regulators to resolve previous compliance issues, citing the firm’s chief strategy officer, Patrick Hillmann. He also stated that, most likely, the outcome of ongoing investigations will be penalties. However, that would be up to the regulators.
Hillmann added that Binance felt confident about the direction of the discussions. Even then, he couldn’t provide a figure for the fines or a timeframe for resolution. He affirmed that the lack of clarity for crypto in the US made it a confusing time for the exchange.
Over the years, several regulatory bodies in the U.S. have investigated Binance.
In 2018, the Department of Justice (DoJ) launched an investigation into potential violations of anti-money-laundering laws by Binance.
In March 2021, the Commodity Futures Trading Commission (CFTC) also investigated whether the company offered crypto derivatives to US customers without first registering with the body.
The Securities and Exchange Commission (SEC) also launched an investigation into Binance’s US division in February last year, focusing on trading firms linked to CEO Changpeng Zhao.
Recently, the SEC escalated what industry refers to as a “war on crypto.” It appears to target certain staking services and stablecoins that the regulatory body has deemed to violate securities laws.
Notably, Paxos was barred from issuing more of the Binance stablecoin, BUSD, by the New York Department of Financial Services (NYDFS).
Following SEC’s enforcement action, U.S. crypto exchange Kraken was fined $30
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