The world’s largest cryptocurrency exchange Binance black money to launder may have overlooked. Some documents uncovered by Reuters allege that the platform maintains weak money laundering controls despite promising tighter compliance.
An investigative report published by Reuters claimed that the world’s largest crypto exchange Binance, despite its public promises about security, failed to cooperate properly with authorities. The report was based on reviews of hundreds of documents, as well as interviews with dozens of former Binance employees, consultants, and business partners.
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Binance has become the center of money laundering
According to the report, Binance left regulators and partners unanswered about their activities, refused German police requests to track down fraudsters and terrorists, and ignored the advice of its own market advisors to recruit clients in countries at risk of money laundering.
In the report, Binance CEO Changpeng Zhao, know your customer (KYC verification It was noted that he ignored senior staff who expressed concern about their needs. All of this also sparked curiosity after the platform publicly claimed that they were welcoming the regulation.
Binance struggled with regulations implemented in China in 2017 and the US in 2019. In 2018, founder and CEO Changpeng Zhao, Binance from Malta However, according to Reuters, Binance withdrew from Malta in early 2019, telling authorities it would not continue with its license application.
It also terminated an agreement to donate to the Malta charity signed for cancer patients in 2020. Despite all this, Binance continued to say that the exchange was subject to Maltese laws.
In short, while the crypto exchange avoids establishing a center that will serve globally; It has received numerous warnings from regulators around the world about its activities, including in Singapore, Japan, the Cayman Islands and the United Kingdom. According to Reuters, in 2020 alone, Binance will be available in seven countries. money laundering risk warnings faced with.
A Binance spokespersonReuters said the alleged information was outdated or inaccurate, but declined to answer detailed questions. A spokesperson for the company said, “As the leading cryptocurrency and blockchain ecosystem, we are both leading and investing in the future of technologies and legislation that will make the crypto industry a regulated, secure industry.” said.