• Binance is doubling the size of its compliance team in response to increased regulatory scrutiny around the world

  • The United Kingdom prohibited Binance activities in the country last month. Similarly, the world’s largest bitcoin exchange has been cautioned by Japan, Thailand, Canada, Germany, and the Cayman Islands.

    With the world’s largest cryptocurrency exchange Binance, which owns India’s leading crypto exchange WazirX, facing increasing regulatory pressure, CEO and Founder Changpeng Zhao announced on Wednesday that the business wants to increase the size of its compliance team by the end of 2021. “Compliance is a process – especially in new areas like crypto,” Zhao said in a blog post in response to global regulatory scrutiny of Binance’s operations in numerous nations. There is still a lot of uncertainty in the industry.” While the four-year-old company has developed swiftly, Zhao admitted that they don’t always do things right, but they’re learning and improving every day and wish to clarify and restate their commitment to working with regulators.

    Binance was banned in the United Kingdom last month. The Financial Conduct Authority, the country’s market regulator, stated on its website that “Binance Markets Limited is not authorized to perform any regulated activity in the UK.” Binance has also been cautioned by Japan, Thailand, Canada, Germany, and the Cayman Islands. Last month, Thailand’s securities regulator, the Securities and Exchange Commission, filed a criminal complaint against Binance. The company was conducting a digital asset business without a license, according to the statement. Similarly, Japan’s Financial Services Agency stated that Binance was operating without authorization in the country.

    Zhao stated that the company has deployed new controls and regulation technology with partners such as CipherTrace to provide users with more protections. “We are pleased to report that we have passed numerous external anti-money laundering (AML) examinations, indicating that our current AML procedures and relationships have been validated.” He also mentioned that Binance’s compliance team and advisory board have increased by 500 percent since last year, with compliance and regulatory experts including former FATF Executive Secretary Rick McDonell and former Head of the Canadian delegation to the FATF Josée Nadeau. Former US Senator for Montana and US Ambassador to China Max Baucus was also a member of the group.

    The Enforcement Directorate issued a notice to WazirX and its directors Nischal Shetty and Sameer Hanuman Mhatre earlier this month for violating foreign currency laws involving crypto transactions worth Rs 2,790 crore. According to an ED statement, the accused Chinese nationals “laundered proceeds of crime worth Rs 57 crore by converting INR deposits into cryptocurrency Tether (USDT) and subsequently transferring the same to the Cayman Island-based bitcoin exchange Binance on instructions received from abroad.” Shetty, on the other hand, has stated that the organization complies with all legal regulations.

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