May 14, 2021 23:59 GMT
Regulatory bodies are investigating whether Binance has allowed Americans to carry out illegal transactions on its platform, such as allowing them to purchase derivatives linked to digital tokens.
The Department of Justice and the US Internal Revenue Service have launched an investigation of the world’s largest cryptocurrency exchange Binance, reports Bloomberg, which cites sources familiar with the matter. The team of investigators includes specialists in the fight against money laundering and tax crimes.
Founded in 2017, Binance is the largest trading volume cryptocurrency exchange site on the planet. Its headquarters are in the Cayman Islands and it has an office in Singapore. According to the outlet, the US Commodity Futures Trading Commission (CFTC) has been investigating whether Binance has allowed Americans to carry out illegal transactions on its platform, such as enabling them to purchase derivatives linked to ‘tokens. ‘digital.
US residents They can only buy these types of products from companies registered with the CFTC. Previously, Binance has ensured that it blocks Americans from conducting illegal transactions on its website, and has warned that it would freeze the accounts of violators.
“We take our legal obligations very seriously and work in collaboration with regulators and law enforcement,” Binance spokeswoman Jessica Jung said, adding that the company does not comment on specific issues or inquiries.
The platform representative stressed that Binance “has worked hard to build a robust compliance program that incorporates the anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”
Cryptocurrency analytics firm Chainalysis reported that in 2019, around 756 million out of a total of $ 2.8 billion in illicit transactions related to the cryptocurrency bitcoin passed through Binance.