A Reuters report says the crypto exchange Binance has been lax in preventing financial crime.
Binance, the largest cryptocurrency exchange by trading volume, has made only weak efforts to prevent money laundering, Reuters reported.
Binance operates outside of the rules many rival companies follow, while at the same time being unclear about the jurisdiction of the main business, the news organization said.
Reuters also reported that Binance CEO Changpeng Zhao “CZ” ignored advice from his compliance team about the lack of background checks to avoid facilitating money laundering through the exchange.
Last month, Reuters reported that Binance had become a “hub” for hackers, scammers, and drug dealers, claims that were refuted by Binance’s chief compliance officer, Matthew Price, who said the report The report used misleading figures to “get an agenda.”
In an effort to curb money laundering on the platform in 2021, Binance has cut the daily withdrawal limit for accounts that have not passed your know-your-customer (KYC) protocol to 0.06 BTC from 2 BTC. .
They have recently increased their hiring of management professionals, hiring Seth Levy, who has spent 16 years with the US Financial Industry Regulatory Authority FINRA and Steven McWhirter from the UK’s Financial Conduct Authority in April.
Binance did not respond to CoinDesk’s request for comment at the time of publication.
In a statement to Reuters, a spokesperson for Binance said that “we are leading and investing in future technologies and legislation that will put the crypto industry on the path to becoming a well regulated and secure industry.”