Reuters released the findings of an investigation into Binance’s regulatory compliance methods in a storey published on Friday. Binance is the world’s largest cryptocurrency exchange by trading volume.
The authors argue that the company’s CEO, Changpeng Zhao, led an organisation that systematically ignored regulators’ requests for financial and corporate structure information and shirked proper client background checks, despite the company’s claims of openness to government scrutiny.
The findings are based on interviews with former Binance executives and advisers. As well as an examination of records including internal communications and confidential messages between the business and multiple national regulators. Several high-ranking workers, according to the memo, have frequently raised concerns about the company’s poor Know Your Customer/Anti-Money Laundering (KYC/AML) procedures, but the CEO has ignored them.
Furthermore, the corporation said to have gone against its own compliance department’s recommendations. By continuing to onboard new customers from seven countries that have been recognised as having a high risk of money laundering.
The report’s authors concluded that Binance’s style of activity allowed it to maintain an ambiguous jurisdictional affiliation. As well as an opaque corporate structure. While delivering financial products that would ordinarily require regulatory clearance or licencing in many of its areas of operation.
A corporate spokeswoman told Reuters that the report’s results were based on obsolete or erroneous information. Changpeng Zhao, the CEO of Binance, later tweeted:
Despite continuing investigations into suspicious activities on its platform in numerous jurisdictions, Binance continues to grow into new regions, with the most recent move linked to a possible deployment in Thailand, as previously reported.