Cryptocurrency exchange Binance is reportedly under investigation by the Justice Department and Internal Revenue Service, Bloomberg reports, citing anonymous sources familiar with the matter. The watchdogs already contacted people close to Binance's business to find out whether the exchange conducted money laundering or tax offenses.
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While Binance spokeswoman, Jessica Jung, declined to confirm or deny the investigation, she added that the exchange has a "robust compliance program" that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity. Spokespersons for the watchdogs did not comment on the investigation.
This is not the first time, when Bloomberg reports on probes against Binance. Last March, Bloomberg reported that the US Commodity Futures Trading Commission (CFTC) was investigating whether Binance broke rules by permitting Americans to trade on its platform. Since the CFTC considers cryptocurrencies like bitcoin (EXANTE: Bitcoin) and ether (ETH) to be commodities, it claims jurisdiction over their futures and other derivatives.
However, since then, no public announcement on the investigation has been made by the CFTC.
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