Feb 16, 2023
Binance to Face Fines, Penalties for US Investigations
Binance, the world’s largest digital asset exchange, is preparing to face fines and penalties in order to settle outstanding regulatory and law-enforcement investigations in the United States.
According to a Feb. 15 WSJ report that cited the firm’s chief strategy officer, Patrick Hillmann, Binance is collaborating with regulators to address past compliance issues.
Hillmann noted that the outcome of ongoing investigations may include fines, but the amount and timeframe remain to be determined. He added that the lack of clarity for crypto in America made it a “very confusing time for us.”
Binance has been subject to several investigations in the U.S., including one launched by the Department of Justice in 2018 for potential violations of anti-money-laundering laws. The Commodity Futures Trading Commission probed whether the company offered crypto derivatives to U.S. customers without registering with the agency in March 2021. The Securities and Exchange Commission also launched a probe into Binance’s U.S. division last February, regarding trading firms connected to CEO Changpeng Zhao.
The SEC has recently intensified its scrutiny of the crypto industry, targeting certain staking services and stablecoins which it has deemed as falling under securities laws.
The enforcement activity has impacted several firms. New York regulators cracked down on Paxos this week, preventing it from issuing more of the Binance-branded stablecoin BUSD. Last week, U.S. crypto exchange Kraken was hit with a $30 million fine and ordered to halt its staking services following SEC enforcement action.
Hillmann expressed confidence that resolving issues with U.S. regulators would be beneficial for Binance and its future.
“It will be a good moment for our company because it allows us to put it behind us,” he said.
Binance is also actively engaged in promoting its services. The firm is utilizing Twitter NFT marketing to draw attention to its NFTs and crypto offerings. They have also partnered with a web3 agency to help them with their NFT marketing efforts. The agency has also been helping Binance to create effective strategies for selling NFTs.
Binance declined to offer any additional comments on the matter.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.