Binance, an international cryptocurrency exchange, has contacted top brokers like FalconX and Hidden Road to tighten the screening procedure to avoid having US investors on the exchange.
Since top brokers are known to render their services to institutional investors, the sort of information required from clients is the location of their businesses and details of workers and founders. It is necessary to get the info attested before handing over for authenticity.
Binance seems to be treading on eggshells ever since its guilty plea about the US charges in November 2023.
As per a spokesperson of Binance, the company has made a solemn pledge to complete adherence to the established regulations. This includes the way it handles the end users connected with its platform. They are now giving transparency total priority.
The company, along with its ex-CEO, Changpeng Zhao, accepted the fact of having breached the Bank Secrecy Act in 2023. In response, the US Department of Justice had spelled out a settlement with Binance regarding money laundering, fraudulent acts, and sanctions breaches. The company ended up paying $4.3 billion as a fine.
In the words of the Acting Assistant Attorney General, Nicole M Argentiere, the credit has to be given to Zhao for bringing Binance up to its stature today, the problem being his total non-compliance with the laws of the land.
The US wing of Binance came up against a lawsuit from the Securities and Exchange Commission in June 2023. Binance and Zhao were also included. The company had to fire over two-thirds of its employees after losing 75% of its revenue.
The company is on an upward swing, with its TVL reaching $112.5 million, up from the previous $67 billion in November. This may be due to the increased demand for Bitcoin.
Binance is still considered the biggest cryptocurrency exchange globally in trading volume.
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