Binance Announces Resolution with US Agencies, Shares Compliance Improvement
Binance says it has agreed to a robust monitorship for its compliance and sanctions control programs.
Popular crypto exchange Binance has revealed that it has made significant progress with regulators. This follows after its recent run-in with regulatory bodies such as the US Securities and Exchange Commission (SEC) and the (CFTC).
In a Tuesday blog post, the exchange acknowledged that it may have done things a bit wrongly in the past. That is, it may have not considered how quickly it was growing as a firm, to update its compliance controls.
Binance Welcomes Scrutiny and Is Currently Cooperating with Regulators
In light of recent events, Binance has reiterated its commitment to regulatory compliance. The firm stated that it is always open to scrutiny as it understands that that will help keep it on track. Part of the statement reads:
“We have faced – and actually welcomed – unprecedented scrutiny, which shed light not only on issues of the past but on the many ways we have worked to fix them. It’s time to move forward.”
About the scrutiny, Binance says it has agreed to a robust monitorship for its compliance and sanctions control programs. The firm believes that cooperating with US agencies is the only way for it to improve its platform and make it safer and even more secure for its users.
Interestingly, Binance also saw the need to verify its claims of progressive compliance. It shared excerpts from relevant agencies acknowledging that the platform has been more than cooperative to ensure that it remains in good standing. These include orders from agencies such as the US Financial Crimes Enforcement Network (FinCEN), the Department of Justice (DoJ), and the Office of Foreign Assets Control (OFAC).
The agencies appear to agree that Binance cooperated fully during their investigations. They also agree on the fact that the platform has also taken necessary measures to correct its wrongdoings. These efforts are evident in the proactive works that it has embarked on alongside law enforcement agencies around the world.
For instance, FinCEN noted in its order that the platform remodeled its compliance program governance and organization structure. It even hired the services of a new compliance leadership with a wealth of experience in the financial sector and law enforcement.
In the aspect of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) the DoJ confirms that Binance already did the needful by implementing an “enterprise-wide AML/CFT and sanctions risk assessments beginning in November 2022.”
Overall, Tuesday’s blog post appears to be a targeted effort by Binance to calm the nerves of its users. This follows after the recent spate of regulatory scrutiny has increased fears among the users of the platform. So much so that it recently experienced an unusual amount of outflow
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