Binance under scrutiny – Like the ferocious Rottweiler grabbing your calf, the US regulator doesn’t seem ready to let go of Changpeng Zhao. The head of the world’s largest exchange, Binance, of which we have produced the Crypto-Portrait, is once again under investigation. The United States is now questioning its valuable partners, investment funds. decryption.
Is the US attacking Binance?
Once is not customary, nor two, nor three for that matter. Federal prosecutors decided to snoop in the Binance business. And more particularly in the exchanges that the platform holds with its main investors, the hedge funds. The target. the goal? Find any evidence of potential violations of US anti-money laundering laws.
Backed by subpoenas or orders, the West Washington District Attorney’s office in Seattle has asked corporate partners to turn over their communications with Binance. However, the regulator doesn’t have any evidence that allows this to incriminate the exchange. This is precisely the whole object of his investigation.
Binance’s reaction was immediate. Chief Strategy Officer of Binance, Patrick Hillmannrecalled that the company has a daily dialogue with, so to speak, ” all regulators around the world, on a daily basis “.
Following of the FTX disaster, it makes sense that regulators are taking advantage of this to try to screw over Binance. The CZ platform is now the undisputed leader of the exchanges, far ahead of the competition. To see if it really is well-founded doubts on the operations carried out by the platform. Or if it is rather a question of taking advantage of the current instability of the sector to implement exaggerated controls that have no other ambitions of American power than to put a spanner in the works of this annoying crypto giant against which they are waging a long-standing conflict.
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Controls too restrictive for the emerging crypto sector?
It must be said that Binance, in its genesis, has spiraled out of control for a long time. The cryptocurrency market has taken the opportunity to grow dramatically, without real anti-money laundering verification procedures. However, this was a time when the cryptocurrency industry was still judged to be on the sidelines, ignored by the regulator. The US now seems to want it increase in an industry that attracts capital e growing interest of the general public for these new digital nuggets.
Hillmann himself acknowledges the shortcuts Binance took in its early days in its approach to regulation. However, in recent years, this is no longer the case. The exchange is even trying to make a name for itself within the American authorities.
“Over the past two years, the company has completely changed its position. Now we have the resources, we are one of the most proactive companies in identifying, freezing and returning laundered funds. »
And this is the logical evolution. Respect for increased anti-money laundering controls it can only be done with resources. Lots of ways. Now, Binance has your back to conduct these analyses. This was not the case at the genesis of him. Incidentally, he probably would never have been able to grow up if he had respected him from day one. And many companies entering the crypto space today also cannot afford it.
Rules that are too restrictive and too early, under the pretext of protection against money laundering, could therefore turn into a real industry killing. If they are not implemented with all due precautions. Because to discourage any entrepreneurial initiative in France and Europe in the field of cryptocurrencies, through a inadequate regulation, it’s not even the right solution. We’ll see what the future generally holds with the upcoming rollout of MiCA Regulation (Market in Crypto-Asset)..
Binance has now reached sufficient critical size to be able to strike back blow for blow in this kind of skirmish over bitcoin conquest funds internationally. To register for the exchange and form your own opinion, that’s it. You will save 10% on trading fees by following this link (trading link).