Binance Faces Probe by US Money Laundering Probe

Binance Faces Probe by US Money Laundering Probe
  • Binance is under investigation by the US DOJ and IRS. 
  • Binance partners with law enforcement agencies to fight bad players.
  • US officers frightened by the lack of oversight over digital belongings.

Crypto exchange Binance is under investigation by the US Department of Justice  (DOJ) and the Internal Revenue Service (IRS). 

Binance Under Investigation by US DOJ and IRS

According to Bloomberg post, officers keen on the way crypto is getting utilized for money laundering sought information from the conversations in the dealings of Binance. Moreover, the publication did not declare whether the investigation is linked to prison violations or not. However, claiming that not all inquiries derive from allegations of wrongdoing.

Binance’s CEO Changpeng Zhao was quick to jointly introduce his stories’ aspects. However, clearly naming the article, he tweeted that the ‘news’ colored his company in a harmful manner. As per Zhao, Binance partners with law enforcement agencies to fight bad players. More so, this includes making things seem like a bad thing.

Even more, the crypto exchange which is banned from working with the US is fielding money laundering allegations. More so, the present report from blockchain forensics agency Chainalysis explained that Binance is the main vacation place for illicit crypto in 2019.

In addition, regulators are investigating whether Binance allowed Americans to make unlawful trades or not. Moreover, it is prohibited from doing business within the US as a result, it offers securities that are not registered with the Commodity Futures Trading Commission. Added to this, Binance suggests Americans use a VPN to cover their place in search of entry to its exchange.

Even more, the firm’s entanglement with federal regulation enforcement comes amid rising regulatory scrutiny of cryptos. More so, the US officers frightened in relation to the lack of oversight over digital belongings, concerned they’re getting used to cowl up unlawful transactions, together with drug offers. 

Meanwhile, the IRS has reportedly been raising its means to trace users who owe taxes related mostly to crypto investments. Recently, the company delivered an announcement on Twitter explaining its compliance with US legal guidelines.

Binance Takes Legal Obligations Seriously

Binance stated that it takes its legal obligations seriously and coordinates with law enforcement and regulators in a collaborative fashion. Even more, the exchange said that they have worked hard to develop a robust compliance event.

For instance, this includes anti-money laundering principles and tools utilized by financial institutions to check and address incredulous activities. 

Binance adds,

“We have a strong track record of assisting law enforcement agencies around the world, including in the United States.”

Recommended for You

Cryptocurrency and blockchain tech interest has enticed Carolyna to write for NewsCrypto. She made her personal mission to help non-crypto geeks to understand the technology with ease.