Binance, known as the world's largest cryptocurrency exchange, is actively countering the perception that the entire crypto industry operates in non-compliance with regulations. In a recent blog post, the company highlighted the extent of its efforts to collaborate with international regulators, aiming to dispel the notion that it operates in an opaque manner to evade the law.
The Binance Compliance team is comprised of professionals from diverse backgrounds, including former law enforcement officers, regulators, and experts in crypto, fintech, and traditional banking compliance. The team is sizable, consisting of 750 core and supporting compliance staff spread across various specialized departments.
Within the team, 20% are members of the Financial Crimes Team, which takes a proactive approach to investigating illicit financial activities, such as terrorist financing and money laundering. Additionally, the law enforcement response team handles around 1,300 requests every week.
Another crucial component of Binance's compliance efforts is the team supporting the Global Money Laundering Reporting Officer (GMLRO). This team works in tandem with the Financial Crime Team to detect and report instances of money laundering. Furthermore, they keep a close eye on the global regulatory landscape to ensure Binance's full compliance with applicable laws and regulations.
Recently, multiple U.S. federal agencies established the Darknet Marketplace and Digital Currency Crimes Task Force, often referred to as a 'mini FBI,' with the objective of disrupting and dismantling criminal organizations. Despite this, data from the U.S. Treasury Department reveals that the U.S. dollar remains more widely associated with global money laundering than cryptocurrencies.
Even Binance's CEO, Changpeng Zhao (CZ), has emphasized that digital assets are not significant players in sanctions evasion. He believes that cryptocurrencies are too traceable, making it increasingly difficult for governments worldwide to track crypto transactions, as he stated in a CNBC interview last year.
Nevertheless, Binance demonstrates its support for sanctions compliance by maintaining a department specifically dedicated to mitigating risks associated with violations of applicable sanctions, Anti-Bribery and Corruption laws, and Counter-Terrorist Financing measures.
In line with other regulated exchanges, Binance adheres to customer due diligence procedures through the implementation of Know-Your-Customer (KYC) and Know-Your-Business (KYB) programs. These measures help to ensure that the exchange complies with regulatory requirements and avoids facilitating unauthorized trading by individuals from specific regions, such as the recent lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
Despite the legal challenges faced by Binance, the company's co-founder, Yi He, expressed confidence in their compliance efforts. In an interview with Bloomberg, she asserted that if Binance is found to be non-compliant, then practically no other global trading platform or offshore company would meet the standard.
In conclusion, Binance is actively invested in ensuring compliance with international regulations. The company has a dedicated and diversified team of compliance professionals who work tirelessly to prevent illicit activities, such as money laundering and terrorist financing. Moreover, Binance is committed to customer due diligence, implementing KYC and KYB programs to comply with regulatory guidelines. As the crypto industry evolves, Binance's commitment to compliance reflects its efforts to foster a transparent and legally compliant ecosystem.