- Binance is called upon to provide any and all data relating to any and all files.
- Exchanges must register with the Treasury and comply with anti-money laundering rules.
US authorities have asked Binance to hand over the records. This was related to the company’s anti-money laundering actions, as well as messages including the CEO Changpeng Zhao (Czechoslovakia).
Reuters reported Thursday that a request from Department of Justice It was conducted in December 2020. It was intended for CZ and 12 other exchanges and partners to disclose the correspondence. Discussing how the exchange handles illegal transactions and recruits US consumers.
Binance has also been called upon to provide any and all data relating to any and all files that have been marked as “Documents.” [to] are destroyed, altered, or removed from Binance files” or “transferred from the US.” In 2017, prosecutors requested a total of 29 papers relating to the company’s management, structure, finances, operations, and compliance processes.
Building trust with regulators
Inquiries about whether Binance complies with US financial regulations prompted the request. Several people familiar with the situation claim that the US government investigated Binance to see if it violated the Bank Secrecy Act. Furthermore, cryptocurrency exchanges must register with the Treasury and comply with anti-money laundering rules. Furthermore, the maximum limit for breaking the law is 10 years in prison.
Chief Communications Officer at Binance, Patrick Hillmanresponded to a Reuters request for comment by saying that accessing regulated cipher suites was a “standard process”.
Another story today about a crypto company receiving an inquiry from a regulator. Asking to voluntarily share certain information in 2020, which we did. It is important for the industry to build trust with regulators.
My chat messages are almost public anyway. pic.twitter.com/h35Xd4tZhf
– CZ 🔶 Binance (cz_binance) September 1, 2022
However, on Thursday, CZ verified the report’s confirmation on Twitter. The CEO stated that the exchange had already freely handed over the information. He added that it was “a request to voluntarily share certain information in 2020, which we did,” noting that US attorneys general have made it “important for the industry to build trust with regulators.”
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