SCRUTINYĬrypto exchanges are under increasing scrutiny in the United States, where top government figures including Treasury Secretary Janet Yellen this year have publicly backed greater regulation of the sector. Until mid-2021, Binance customers could trade crypto by registering with just an email address.īinance disputed Reuters' findings, calling them "outdated." The exchange said it is "driving higher industry standards" and seeking to "further improve our ability to detect illegal crypto activity on our platform." It said it did not consider Reuters' calculations of illicit fund flows to be accurate. Reuters found that the gaps in Binance's compliance programme enabled criminals to launder at least $2.35 billion in illicit funds through the exchange, which also served traders in Iran despite U.S.
BINANCE CEO SHIB LICENSE
Born in China and educated in Canada, where he holds citizenship, Zhao told Bloomberg in March that he will be based for the "foreseeable future" in Dubai, which that month granted Binance a license to conduct some operations.Ī series of Reuters articles this year revealed how Binance drove its explosive growth while keeping weak customer checks and withholding information from regulators. "Binance is requested to produce all documents and materials that are responsive to this letter in its possession, custody, or control," it said.īinance was launched by Zhao, known as CZ, in Shanghai in 2017 and as of July controlled over half of the world's crypto trading markets, processing transactions worth more than $2 trillion that month. The letter made 29 separate requests for documents produced since 2017, covering the company's management, structure, finances, anti-money laundering and sanctions compliance, and business in the United States. A Binance spokeswoman told Bloomberg at the time, "We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion." The probe's existence was reported last year by Bloomberg but until now little has been known about it. The request reveals the broad scope of the U.S. A Department spokesman declined to comment. He didn't say how Binance responded to the Justice Department request.
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