• Binance, the world’s largest crypto exchange, is expecting to face fines for past regulatory violations.
• The U.S. Attorney’s Office has been investigating Binance since at least 2018.
• The Department of Justice has sent out subpoenas to trading firms requesting records of their dealings with Binance US.
Binance Bracing Itself For Fines
The world’s largest crypto exchange, Binance, has been under extra scrutiny since the collapse of rival exchange FTX and is now bracing itself for potential fines from US regulators to settle “past conduct” as reported by The Wall Street Journal.
Past Regulatory Violations
Chief Strategy Officer Patrick Hillmann told The WSJ that due to rapid growth in its early years, the exchange was not initially aware of all laws and regulations designed to prevent money laundering, sanctions evasion and corruption; therefore the company is expecting monetary penalties and is working with regulators to find a solution.
U.S Government Investigation
According to Reuters, the U.S government has been conducting an investigation into Binance since 2018; more recently sending out subpoenas requesting trading firms’ records of their dealings with Binance US as well as assessing whether evidence collected is sufficient enough to bring charges against several individuals including CEO Changpeng Zhao.
Possible Outcome & Timeline
Hillman believes that a likely outcome of this investigation could be a fine but said it was up to regulators to decide how severe or lenient they will be when issuing any penalties; he also declined to provide an estimate on size or timeline for when investigations might conclude.
Binance Taking Action
In light of this news, Binance remains committed towards providing a safe platform for its customers and bringing clarity regarding future regulations in order for them remain compliant going forward; Hillman also noted that although he did not know what actions DOJ would take against the firm he does expect consequences which could include fines or other remediation measures as part of an agreement between both parties.