Binance, the world's largest digital asset exchange, is preparing to face fines and penalties to complete an outstanding regulatory and enforcement investigation in the US. This information is quoted from the tradingview.com website, where they also quoted news based on a Wall Street Journal report on February 15 that quoted Binance CSO, Patrick Hillman. The company's CSO has been working with regulators in order to address compliance issues in the past. 

 

binance
Binance

 


Hillman said his company is working with regulators to figure out what improvements they need to make to make up for past problems. He also added that the outcome of the ongoing investigation is likely to be a fine or even more, adding that whatever it is is a decision from the regulator. Crypto companies like Binance have been the target of several American investigations, including one initiated in 2018 by the Justice Department over alleged violations of anti-money laundering laws. 


In March 2021, the CFTC also participated in an investigation into whether the Binance company offered crypto derivatives to customers in the US without first registering with the agency. The SEC also launched their investigation into the US Binance division in February 2022. The investigation was carried out regarding a trading company connected to Binance CEO, Chanpeng Zao. Hillman added that Binance is very confident and happy about the direction of the discussions, however, it has not been able to determine the size of the fine and the timescale for resolving it with US regulators. Hillman said that the lack of clarity for crypto in the US makes it very confusing for the company. 


The SEC has also recently stepped up what industry observers call the "war on crypto" that appears to target certain staking services and stablecoins that are considered to be included in securities laws. Earlier this week, NY regulators cracked down on Paxos and prevented it from issuing more BUSD stablecoins. Last week, US crypto exchange Kraken was fined $30 as well and ordered to halt its staking services following an enforcement action from the SEC. Patrick Hillman agrees with this and concludes that resolving the issue with US regulators will be good for the company as well as the future.


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