He Yi, the co-founder of Binance, in a recent podcast held by Binance Space disclosed that the cryptocurrency exchange with their internal audit team conducted more than 120 investigations in the last two years, which resulted in firing of over 60 employees for non-compliance and recovered $30 million in illicit gains.
Wu Blockchain reports Binance conducting internal audits
Strengthening Internal Controls
The exchange has also hired two U.S. law enforcement coordinators that ensure that Binance is in compliance with law and regulations, such as the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. After $30 million were recovered by the exchange, the company is pursuing legal actions in two cases to reclaim further assets. The main aim of the exchange is to make sure that the team creates a safe, secure and compliant environment for the exchange to protect its users.
Why U.S.?
Out of 100% of cryptocurrency users, 28% of crypto users being Americans, Binance cannot afford to let go of such huge market that too because of regulatory negligence and U.S. is known for its strict financial regulations, SEC scrutiny and state level regulations. The company has been investigated by the SEC, warned by the NYDFS, and faced allegations of allowing cases of money laundering and terrorist financing. To address these challenges Binance had to take steps to streamline its compliance measures and is currently working closely with US regulators to ensure adherence to the regulatory requirements.
These efforts indicate that the exchange is making efforts to remain transparent as much as possible and stick to the set regulations with the ever changing crypto landscape.
Binance and Other Regulatory Challenges
Binance is going strong with regulations due to increasing regulatory landscape in the crypto space. The company has faced significant backslash from the regulators over the world and the platform has been scrutinized by various government agencies worldwide.
In India, for example, Binance had to pay a hefty fine of $2.25 million in June 2024 following its registration with the Financial Intelligence Unit (FIU). The company was also scrutinized for unpaid taxes, with the Indian government finding out $97 million in unpaid goods and service taxes (GST) from various crypto exchange, which unfortunately also include Binance.
With the internal audits and upcoming legal actions to be taken by the exchange, it is trying to maintain its position as a leader in cryptocurrency industry and is making sure that it remains transparent and adheres to the regulations as much as possible.
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