Following the disapproval it received for its lack of control, Binance recently became a part of the US-based Chamber of Digital Commerce which advocates for a range of public policies. These policies include providing digital assets with the same tax treatment, implementing Anti-Money Laundering and Know Your Customer regulations for crypto exchanges, providing greater regulatory clarity for security tokens, and researching central bank digital currencies.
U.S. prosecutors are examining the ties between hedge funds and the Binance cryptocurrency exchange for potential money-laundering offenses. According to the Washington Post, sourced from anonymous sources, the federal prosecutor’s office in Seattle has requested investment firms to provide evidence of their communication with Binance in recent months. Notwithstanding, legal experts have stated that the issuance of subpoenas does not automatically mean that the crypto exchange or hedge funds are facing charges, as authorities are presently examining the evidence and are considering a possible agreement with Binance.
When asked for a comment, Binance failed to respond. The crypto exchange has been the subject of inquiry in the United States since 2018, when investigators began examining various cases of illicit money going through the exchange.
Potential breaches include illegal money transmission, money laundering conspiracy and offenses against criminal sanctions. The Bank Secrecy Act orders digital currency exchanges that operate “substantially” in the United States to register with the Treasury Department and comply with anti-money laundering rules.
Patrick Hillmann, Binance’s Chief Strategy Officer, has accepted to the Washington Post that the company had a deficient approach to regulatory compliance in its early years, but has made major investments in compliance programs. To stay in line with international sanctions, Binance has joined the Association of Certified Sanctions Specialists, or ACSS. On the 6th of January, the crypto exchange declared that its sanctions compliance team would go through certification training with the ACSS.
The ACSS training is intended to teach Binance’s team about the directives of the U.S. Treasury’s Office of Foreign Assets Control and inform them about potential risks of violations. Binance has recently become a part of the American crypto lobbying group Chamber of Digital Commerce following criticism of its lack of regulation. The group campaigns for various public policies, including tax parity for digital assets, Anti-Money Laundering/Know Your Customer regulations for crypto exchanges, improved regulatory clarity for security tokens and research on central bank digital currencies.