Binance's Chief Strategy Officer (CSO) says the company experienced certain regulatory concerns years after its 2017 launch. The business is currently talking with American officials about a potential equal playing field.
Recently, the US regulatory authorities increased their controls over the bitcoin market. Although examining most businesses, they have their sights set on Binance, the biggest cryptocurrency exchange in the world.
Binance Acknowledged Regulatory Compliance Gaps
The exchange's failures to comply with regulations were highlighted by Binance CSO Patrick Hillmann in an interview with The Wall Street Journal. He clarified that the security procedures for the exchange were mostly implemented with flaws. These covered guidelines for the Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols (AML).
The CSO attested that Binance has already addressed the security issues with its employees and protocol breakdowns. He stated that two years after the platform's debut, these problems were still prevalent. Nonetheless, Binance has been enhancing its features to meet its goals for international growth.
Hillmann noted that some issues were brought on by a shortage of employees to supervise cybersecurity and compliance while sustaining their expansion-related operations. However the CSO said that by adding more people to their compliance team, they had made all the necessary adjustments.
Almost 750 more employees have been added to the cryptocurrency exchange's workforce in the last two years. The CSO also disclosed that Noah Perlman was hired by Binance as its new chief compliance officer. Former Chief Operating Officer at Gemini, Perlmann.
Binance Talks About Settlement With Regulators
The cryptocurrency exchange is under investigation by some American regulators because of problems with its compliance policies. The Department of Justice (DOJ), the Commodities Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), and the United States Securities and Exchange Commission (SEC) are the regulatory bodies (IRS). They look at the exchange's recent financial reserves and organizational structure.
Hillmann stated that the exchange and regulators are now considering potential settlement. He pointed out that finding common ground would prevent the watchdogs from looking into Binance's US operations.
The CSO promised to keep the specifics of the conversation between Binance and the regulators confidential. The regulators, though, would make that decision. They could slam the deal with a fee or a big price payment in lieu of reparation.
Hillmann added that Binance is working hard to make sure the conclusion would not harm consumers but rather benefit them. He claimed that the exchange wants to resolve any regulatory uncertainty and move forward, putting a greater emphasis on its operations.
Another incident was that Paxos, the company that distributed Binance USD tokens, came under scrutiny from the New York Department of Financial Service. Paxos was told by NYDFS to stop creating new BUSD tokens. The blockchain company announced that it would stop producing new BUSD coins but would continue to oversee client redemption of the stablecoin.