Binance Displays Compliance To Pay Fines For Regulatory Violations Of The Past
Binance Chief Strategy Officer, Patrick Hillmann, announced in an interview with The Wall Street Journal that the world’s largest cryptocurrency exchange is willing to pay fines to “make amends” for past regulatory violations.
Hillmann acknowledged that the company grew rapidly and was initially unaware of the laws and regulations surrounding money laundering, sanctions evasion, and corruption. Binance expects to face fines and is currently working with regulators to remedy the violations.
Binance’s Fate Hangs In The Balance
According to Reuters, Binance has been under investigation by the US Attorney’s Office for the Western District of Washington since at least 2018, and the Department of Justice (DOJ) has reportedly sent at least two trading firms subpoenas requesting records of their past dealings with Binance US.
The DOJ is currently assessing whether the evidence they have collected is sufficient to bring charges against the exchange and several individuals, including CEO Changpeng ‘CZ’ Zhao.
Hillmann did not specify which investigation he was referring to during his interview with The Journal but stated that the outcome could “likely [be] a fine, could be more…We just don’t know. That is for regulators to decide.”
He declined to estimate the size of the fines or a timeline for when the investigation might be settled. However, he expressed confidence in the discussions with regulators, stating, “It will be a good moment for our company because it allows us to put it behind us.”
The company is committed to complying with regulations in the future and is working to improve its compliance measures.
Binance Changes Its Stance
Binance’s willingness to pay fines to address past violations is a change from its previous stance. CEO CZ had previously stated that Binance was not subject to US regulations and that the company had no headquarters or official location.
However, as regulatory pressure has increased, Binance has taken steps to comply with regulations and improve its compliance measures, including hiring former US Treasury Department officials and implementing a new anti-money laundering program.
The outcome of the investigation and potential fines imposed on Binance will have implications for the broader cryptocurrency industry as regulators seek to bring companies into compliance with anti-money laundering and sanctions regulations.