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Bloomberg: The United States launches an investigation on the world’s largest cryptocurrency exchange


May 14, 2021 23:59 GMT

Regulators are investigating whether Binance has allowed Americans to conduct illegal transactions on its platform, such as allowing them to purchase derivatives linked to digital tokens.

The US Department of Justice and the US Internal Revenue Service have launched an investigation into the world’s largest cryptocurrency exchange, according to reports Bloomberg, Which cites sources familiar with the matter, including a team of investigators specializing in combating money laundering and tax crimes.

Founded in 2017, Binance is the largest cryptocurrency exchange site on the planet. It is headquartered in the Cayman Islands and has an office in Singapore. According to the outlet, the CFTC was investigating whether Binance had allowed Americans to conduct illegal transactions on its platform, such as enabling them to purchase derivatives linked to digital “tokens”.

US population They can only purchase these types of products from companies registered with CFTC. Previously, Binance took care to prevent Americans from conducting illegal transactions on its website, and warned that it would freeze violators’ accounts.

“We take our legal obligations very seriously and work in cooperation with regulators and law enforcement,” said Binance spokeswoman Jessica Jung, adding that the company does not comment on specific issues or inquiries.

A representative stressed that Binance “has worked hard to build a robust compliance program that includes anti-money laundering principles and tools that financial institutions use to detect and address suspicious activities.”

Cryptocurrency analytics firm Chainalysis reports that it’s around 2019 756 million of the total of $ 2.8 billion in illicit transactions Related to the cryptocurrency that was passed through Binance.

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