Problems persist for Binance Coin
There seems to be no end for Binance Coin from a regulatory perspective, with new money laundering allegations launched by the Reuters news agency.
No end of pitfalls for Binance Coin
Last January, in a long report, Reuters had accused the Binance exchange of hiding that it had had a rather lax conduct in terms of controls on the platform. This would lead to the possibility, according to Reuters, that money laundering or other illegal transactions could be done through Binance.
A few days ago, the most famous Anglo-Saxon news agency in the world reiterated and developed this concept. Binance is accused of wanting to isolate itself from regulators, for example by backdating its documents, and by other similar schemes. Yet recently Binance seems to be moving towards a policy of compliance in all countries where it operates, as it did recently in France and Italy and in other countries, such as recently in Cyprus.
#binance Receives 4th Regulatory Approval in Europe with Registration of Crypto Asset Service Provider in Cyprus 🇨🇾
This registration allows us to offer spot, custodian, staking and chart services in the country.
Learn more ⤵️https://t.co/ws98asmIAF
— Binance (@binance) October 20, 2022
Reuters recalls in its article that in September 2021 Binance was indicted by the US Department of Justice specifically for money laundering. In fact, according to what the news agency reports, the exchange would use its own subsidiaries to escape scrutiny and its behavior would therefore always be very balanced between legality and illegality.
Problems in Britain
According new according to reports, the biggest problems for the exchange would be with the FCA, the regulator of the London Stock Exchange, which two years ago had already banned the exchange from operating on British soil, precisely because of allegations lack of transparency and lack of authorization. In the article, Reuters talks about the exchange submitting false documents to the FCA to circumvent the regulator’s regulations.
According to authorities, Binance was involved in money laundering last year to the tune of over $2 billion.
The Growth of Binance Coin (BNB)
The stock exchange founded by Changpeng Zhao during these years of almost uninterrupted growth, would have ignored regulatory problems, even taking advantage of the vacuum that exists in the industry from a regulatory point of view.
The growth of the company is clearly demonstrated by the exponential growth of its BNB coin which, despite the stock market crash, has always been able to defend itself and has been one of the best performing assets in the market in recent months against the average. cryptocurrency collapses by 60/70%, even 90% in the last year. For instance, Bitcoin is down 65% from its highs of a year ago, while Ethereum is down 63%.
Clearly, investors remain bullish on the exchange’s ability to grow and become one of the benchmarks in the cryptocurrency market as well as those very exciting ones involving decentralized finance and NFT.
Binance’s custody service becomes more secure
But in order to avoid these accusations and to show a behavior more in line with the rules of the financial markets and the protection of its users, new information about the exchange’s cryptocurrency custody services is coming. In recent days, the company announced that its custody service will integrate risk management tools from TRM Labs, the industry leader in blockchain analytics and intelligence technology.
The integration would allow Binance Custody to better ensure regulatory compliance and risk management program by clients, precisely through TRM’s platform.
Binance Custody was launched in December 2021, and it is one of the most security and privacy conscious services for users on the market. Since its inception, the company has paid great attention to security detail and adherence to the highest security standards, achieving ISO 27001 and ISO 27701 certifications and SOC 2 Type 1 attestation, and is currently pursuing its attestation SOC 2 Type 2.
Now, with the integration of the services of the TRM platform, it seeks precisely to counter phenomena related to financial crime, such as money laundering crimes, for which Binance is responsible in multiple places.
Athena YuEVP of Binance Custody, said:
“As an institutional custodian, our top priority is to provide secure and compliant services that our clients can trust. Using TRM’s compliance and risk management solutions strengthens our suite of secure custody solutions to help clients safely participate in this rapidly growing digital economy.