- Binance is currently under investigation by the US DoJ and IRS.
- Users involved are probed for information related to money laundering.
- Likewise, the IRS previously probed Coinbase and its users in 2017.
Reportedly, the individuals involved with Binance are probed for information related to money laundering and tax offenses. More so, the exchange operates in different jurisdictions including the Cayman Islands and Singapore. This indicates that it has been able to ignore most government oversight.
Moreover, the investigation details remain confidential. In addition, the representatives from the IRS and DoJ did not respond to Bloomberg, while Binance stated that it does not respond to specific inquiries.
”We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion…We have worked hard to build a robust compliance program that incorporates anti-money laundering principles.”
Binance Faces More Laundering Than Other Exchange
It is hard to predict what the Binance probe will provide without any extra information about the investigation. Moreover, the analytics firm Chainalysis previously published a report showing that Binance is used for laundering more than any other exchange.
More so, Chainalysis has worked with the IRS before, that data may have spurred the investigation. Additionally, the report states Binance has not been accused of wrongdoing. This indicates that the investigation may be focused on Binance’s users rather than the company itself.
Likewise, the IRS previously probed Coinbase and its users in 2017. Since then the compliance efforts have continued. Furthermore, Binance is currently the largest cryptocurrency exchange, with $81.8 billion in volume traded over the past 24-hours.
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