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Claims Of Lax Money Laundering Measures Are Dismissed By Binance CEO


As per the report, Binance maintained lax consumer screening, hid information from regulators, and ignored compliance department advice.

This fresh accusation comes as the exchange ramps up its efforts to position itself as a regulatory-friendly platform.

Last year, the world’s largest cryptocurrency exchange by trading volume was the target of various regulatory crackdowns. However, it has maintained its desire to collaborate with regulators and meet compliance obligations.


As per Reuters’ study, while Binance frequently boasts about regulatory compliance in public, its private activities do not add up.

The study claims that Binance CEO Changpeng Zhao’s public declarations about accepting regulatory monitoring are a sham. It was determined that the exchange had not cooperated completely with regulators.

According to Reuters, Binance’s claim that it is governed by Maltese legislation is deceptive. Despite the fact that the exchange had sought Malta’s authorities for license and suggested relocation, it did not proceed.

According to sources close to the situation, the exchange was cancelled due to the island nation’s strong anti-money laundering regulations.

The investigation also revealed that some top officials in the corporation were concerned about the company’s compliance standards. However, the CZ-led exchange ignored this advice on many occasions.

The firm has operated outside of national regulations by forming an opaque corporation. Furthermore, the company declined to specify its jurisdiction, making it harder for regulators to supervise its operations.

Particularly, regulators in South Africa, the United Kingdom, Singapore, and other countries have issued warnings to consumers about utilizing the platform.

The report’s information was gathered through interviews with former top executives and staff, as well as a review of different government papers.

Changpeng Zhao has responded to the report, calling it “fake news.” According to a tweet from the crypto millionaire, “Journalists talking to people who were let go from Binance and partners that didn’t work out, trying to smear us. We are focused on anti-money laundering, transparent and welcome regulation.”


He later tweeted that Binance employs the same, if not more stringent, anti-money laundering measures as banks. Zhao further stated that the exchange was beneficial to law enforcement agencies all over the world, and that he has received several thank you notes as a result of it.