Problems continue for Binance Coin
Problems continue for Binance Coin

Problems continue for Binance Coin

By Vincenzo Cacioppoli - 21 Oct 2022

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There seems to be no end of trouble for Binance Coin from a regulatory standpoint, with new allegations of money laundering initiated by the Reuters news agency.

No end of pitfalls for Binance Coin

Last January, in a lengthy report, Reuters had accused the Binance exchange of hiding that it had a fairly lax conduct from the standpoint of controls on the platform. This would lead to the possibility, according to Reuters, that money laundering or otherwise illegal transactions could be carried out through Binance.

A few days ago, the world’s most famous Anglo-Saxon news agency reiterated and developed this concept. Binance is accused of wanting to insulate itself from regulators, for example by backdating its documents, and by other similar ploys. Yet recently Binance seems to be moving toward a policy of bringing itself into compliance in all the countries in which it operates, as it has done recently in France and Italy and in other countries, such as recently in Cyprus.

Reuters recalls in its article that in September 2021 Binance had been charged by the US Department of Justice specifically for money laundering. In fact, according to what the news agency reports, the exchange would use its own subsidiaries to evade scrutiny and thus its behavior would always be very much in the balance between legality and illegality.

Problems in Britain

According to news reports, the biggest problems for the exchange would be with the FCA, the London Stock Exchange’s regulator, which two years ago had already banned the exchange from operating on British soil, precisely because of allegations of lack of transparency and lack of authorization. In the piece, Reuters talks about the exchange’s submission of false documents to the FCA to circumvent the regulator’s regulations.

According to authorities, Binance allegedly was involved in money laundering last year to the tune of more than $2 billion

The growth of Binance Coin (BNB)

The exchange founded by Changpeng Zhao in these years of almost non-stop growth has allegedly overlooked regulatory issues, even taking advantage of the vacuum that exists on the industry from a regulatory perspective.

The company’s growth is clearly demonstrated by the exponential growth of its BNB coin, which despite the market crash, has still been able to defend itself and has been one of the best performing assets in the market for the past few months in the face of average cryptocurrency collapses of 60/70%, or even 90% over the past year. For example, Bitcoin is down 65% from its highs of a year ago, while Ethereum is down 63%.

Evidently, investors remain optimistic about the exchange’s ability to develop and become one of the benchmarks for the cryptocurrency market as well as the very exciting ones involving decentralized finance and NFTs.

Binance’s Custody service becomes more secure

But in order to obviate these accusations and to show a behavior that is more compliant with the rules of the financial markets and the protection of its users, there comes fresh news about the exchange’s cryptocurrency custody services. In recent days the company announced that its custodial service would integrate risk management tools from TRM Labs, the industry leader in blockchain analytics and intelligence technology. 

The integration would enable Binance Custody to better ensure regulatory compliance and risk management program by clients, precisely through TRM’s platform.

Binance Custody was launched in December 2021, and it is one of the most security- and privacy-conscious services for users on the market. Since its inception, the company has taken great care in the details of security and compliance with the highest security standards, obtaining ISO 27001 and ISO 27701 certifications and SOC 2 Type 1 attestation, and is currently pursuing its SOC 2 Type 2 attestation.

Now with the integration of services from the TRM platform, it is precisely seeking to counter those phenomena related to financial crime, such as money laundering crimes, for which Binance is accountable in multiple venues.

Athena Yu, EVP of Binance Custody, said:

“As an institutional custodian, our utmost priority is to provide secure and compliant services that our clients can trust. Utilizing TRM’s compliance and risk management solutions strengthens our suite of secure custody solutions to help clients safely participate in this rapidly growing digital economy.”

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog., he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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