0
0
Binance Implements Stricter Screening Procedures
Binance, a prominent international cryptocurrency exchange, has taken proactive measures by reaching out to top brokers such as FalconX and Hidden Road. The primary objective behind this initiative is to enhance the screening process to prevent any US investors from accessing the platform.
Enhanced Information Requirements
Top brokers, who predominantly cater to institutional investors, are now mandated to collect detailed information from clients. This includes verifying the location of their businesses, as well as obtaining comprehensive details about their employees and founders. To ensure authenticity, all provided information needs to be duly attested.
Following the guilty plea made by Binance in November 2023 regarding US charges, the company appears to be proceeding cautiously in its operations.
Commitment to Regulatory Compliance
A spokesperson from Binance has reaffirmed the company’s unwavering commitment to full compliance with established regulations. This commitment extends to the manner in which the platform interacts with end users, with transparency now being accorded the utmost priority.
In acknowledgment of breaching the Bank Secrecy Act in 2023, both Binance and its former CEO, Changpeng Zhao, reached a settlement with the US Department of Justice. The settlement encompassed charges related to money laundering, fraudulent activities, and sanctions breaches, resulting in a hefty $4.3 billion fine imposed on the company.
Acting Assistant Attorney General, Nicole M Argentiere, commended Zhao for elevating Binance to its current stature, albeit highlighting his non-compliance with US laws as a significant concern.
Challenges and Resilience
In the midst of legal challenges, including a lawsuit from the Securities and Exchange Commission in June 2023, Binance faced adverse effects. As a consequence, the company had to downsize its workforce by over two-thirds after witnessing a substantial decline of 75% in revenue.
Despite these hurdles, Binance has displayed resilience and witnessed an upward trajectory, with its Total Value Locked (TVL) surging to $112.5 million from $67 billion in November. This surge could potentially be attributed to the heightened demand for Bitcoin in the market.
Binance continues to maintain its position as the leading cryptocurrency exchange globally in terms of trading volume, underscoring its significance in the digital asset ecosystem.
Image/Photo credit: source url
