Regulatory Crackdown on Crypto

Global cryptocurrency exchange Binance has been under US federal investigation since late 2020 according to this report by Reuters. The exchange and thirteen of its senior officers, including CEO Changpeng Zhao (CZ), have been asked to provide internal records.

The documents are regarding it’s anti-money laundering processes as well as any company records instructing documentation to be “destroyed, altered, or removed from Binance’s files” or “transferred from the United States.”

Compliance with local regulatory requirements has been top of mind for the crypto space. Binance, who’s been an active recruiter for its security, regulations and legal division, saw approximately $2.35 billion in illicit funds laundered through the exchange, according to findings by Reuters.

Binance US v. Binance

It’s important to remember that the entity most understand to be Binance does not technically operate in the United States. In 2019, Binance.US, which Reuters claims to be owned by CZ, was registered with the US Treasury and serves the US base. The Reuters piece goes on to state that the US Justice Department is further investigating why Binance.US exists in light of the broader Binance exchange.

The senior executive team has been requested to hand over information that could illuminate the relationship between the two entities.