Finst

Binance could face fines

Because Binance wasn't aware of the 'numerous laws around preventing money laundering', the crypto exchange is expected to receive multiple fines.

By Finst News
• 2 min read
Binance could face fines

Because Binance wasn't aware of the 'numerous laws around preventing money laundering', the crypto exchange is expected to face several fines. Binance is willing to pay these fines and wants to help as much as possible with U.S. law enforcement probes. This, according to the Wall Street Journal.

According to Patrick Hillmann, chief strategy officer (CSO) of Binance, the exchange 'grew too fast.' It wasn’t initially aware of the numerous laws and rules around money laundering, sanctions evasion, and anti-corruption, the CSO says. The crypto exchange therefore expects fines, but it wants to 'cooperate with regulators to determine what remedies Binance must undergo to make things right,' Hillmann adds.

Recently the SEC sanctioned rival exchange Kraken for an alleged violation of exchange rules. Kraken then paused its staking services for U.S. customers and had to pay $30 million.

Whether and how large the potential fines for Binance will be remains to be seen.

Earlier this week the operator of the Binance stablecoin, Paxos, was the next target of regulators. BUSD briefly decoupled from its peg to the U.S. dollar.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.