iHodl.com
Main page News, US Market, Binance, Regulations

Cryptocurrency exchange Binance was mixing finances and staff at Binance.US, although the US-based exchange was portraying itself as an entirely independent entity, The Wall Street Journal has learned, citing internal documents from 2018 to 2020 and interviews with former employees.

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

The report says Binance created the American version of its platform to "neutralize US authorities" as it was worrying about the threat of prosecution. The documents obtained by WSJ reportedly show Binance developers in China had access to the software code supporting Binance.US users' crypto wallets.

A spokeswoman for Binance acknowledged that the exchange "did not have adequate compliance and controls in place during those early years." However, she reassured that Binance has become a "very different company today when it comes to compliance." As of press time, Binance Founder, Changpeng Zhao, made no public statements regarding the matter.

Coinbase to Delist BUSD Over Failure to Meet 'Listing Standards'

In mid-February, Binance Chief Strategy Officer, Patrick Hillmann, told WSJ in an interview the exchange might pay penalties to settle investigations conducted by US regulators against the exchange.

Binance was working with regulators to "figure out what are the remediations we have to go through now to make amends for that," he added. However, Hillmann admitted that the outcome could be more than just a fine.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

Read also:
Strawberry Cake Media Corp. © 2024 Cookie Policy Editorial team Archive

ihodl.com is an illustrated edition about cryptocurrencies and financial markets.
Every day we publish the best materials for everyone interested in economy.