Cryptocurrency exchange Binance expects to pay fines to US authorities to resolve regulatory and police investigations into its past conduct, the company’s chief strategy officer reportedly said. When Binance started its business, the company was not familiar with the rules it had to abide by in the US, the executive explained.
Binance plans to reach a settlement with US regulators.
Binance chief strategy officer Patrick Hillmann revealed on Wednesday that the cryptocurrency exchange expects to pay fines to resolve existing regulatory and law enforcement investigations in the US, the Wall Street Journal reported.
He explained that in its early days, Binance was not familiar with the legal framework and regulations in the US to mitigate the risk of bribery and corruption, money laundering, and economic sanctions.
The Binance executive stated that the cryptocurrency exchange is currently working with regulators to identify possible “remedies” that the company has to go through “to make amends” for its past conduct. He hopes the result will be a fine, but warned there could be more. “We just don’t know. That is for the regulators to decide, ”he emphasized.
Binance is reportedly being investigated by various US authorities. The US Department of Justice (DOJ) is reportedly investigating the crypto exchange for violations of US money laundering laws. The US Securities and Exchange Commission reportedly (SEC) is investigating the company for the bnb crypto token while the Commodity Futures Trading Commission (CFTC) is investigating whether Binance offered cryptocurrency derivatives to US clients without registration.
While noting that he could not estimate the size of the fines or when Binance might reach a resolution with US authorities, Binance’s chief strategy officer said his company is “very confident and feels very good about where are those discussions going? He opined:
It will be a good time for our company because it allows us to leave it behind.
Hillmann noted that it was a “very confusing time” for Binance to understand the expectations of US regulators and their oversight of the cryptocurrency sector. Binance is currently not available to US investors. However, the crypto exchange has an associated platform that serves US crypto traders called Binance US, a separate entity operated by BAM Trading Services.
The SEC recently took action against several cryptocurrency companies, including Kraken for its staking program, Paxos for its issuance of the Binance USD (BUSD) stablecoin, and Terraform Labs for defrauding investors.
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