George Miller
During a recent Binance Space podcast, He Yi, a co-founder of Binance, revealed that the cryptocurrency exchange’s internal audit team has carried out over 120 investigations in the past two years. This effort led to the termination of more than 60 employees for not adhering to compliance standards and the recovery of $30 million in illegal profits.
Enhancing Compliance Measures
To improve compliance with laws such as the Bank Secrecy Act and anti-money laundering regulations, Binance has onboarded two law enforcement coordinators from the U.S. Following the recovery of $30 million, the exchange is also seeking legal recourse in two separate cases to recover additional assets. The primary goal is to establish a safe and secure trading environment for its users.
The Importance of the U.S. Market
Considering that 28% of cryptocurrency users are based in the U.S., Binance recognizes the critical importance of maintaining its standing in this major market. The U.S. is known for stringent financial regulations, including oversight from the SEC and local authorities. The company has been under investigation by the SEC and has faced warnings from the New York Department of Financial Services for allegations related to money laundering and terrorist financing. In response, Binance is taking proactive measures to enhance its compliance protocols and is cooperating with U.S. regulators to meet requirements.
These initiatives demonstrate Binance’s commitment to transparency and adherence to regulations in the rapidly evolving cryptocurrency sector.
Ongoing Regulatory Challenges
Amidst a tightening regulatory environment, Binance is striving to navigate varied global scrutiny. The platform has encountered significant challenges from regulatory bodies around the world.
In India, Binance faced a substantial fine of $2.25 million in June 2024 after registering with the Financial Intelligence Unit. Additionally, it has been under investigation for failing to pay taxes, with the Indian government discovering $97 million in unpaid goods and service taxes from various exchanges, including Binance.
Through its internal audits and planned legal actions, Binance aims to uphold its leadership position in the cryptocurrency industry while emphasizing transparency and regulatory compliance.