Binance Responds to US Senators’ Inquiry and Dispels Misconceptions
Binance recently responded to a letter from US Senators Elizabeth Warren, Chris Van Hollen, and Roger Marshall, in which the senators raised concerns about the company’s compliance, transparency, and regulation.
In their response, Binance clarified several misconceptions and outlined their commitment to regulatory compliance, transparency, and user protection. The exchange emphasized that it sees regulation as the best form of user protection and that it supports the US government’s efforts to create a holistic approach to regulation rather than a patchwork of laws.
This response was sent to Senator Warren, Van Hollen, and Marshall on Mar 16th, 2023 (2 weeks ago).
It has lots of details.https://t.co/Q8wXnnUXDo
— CZ 🔶 Binance (@cz_binance) March 28, 2023
Binance’s response also highlighted its efforts to comply with local regulations in various countries and regions around the world, including obtaining regulatory approvals or operating licenses in countries such as France, Italy, Spain, Australia, and Mexico. The company also emphasized that it has prioritized local regulatory compliance as it has grown, including launching a separate US entity, Binance.US, in 2019 to establish a compliant platform for US users.
The exchange also stressed its commitment to compliance, pointing out that it regularly engages with law enforcement and has a team of several hundred compliance and security experts who work closely with government law enforcement and regulatory bodies across the globe.
Binance has also continually strengthened its compliance controls, including hiring subject matter experts as part of its senior compliance personnel, working with world-class third-party vendors to conduct Know Your Customer (KYC) and transaction monitoring, and consulting with industry experts to review and enhance its controls.
In addition, Binance emphasized that the public blockchain record of crypto exchanges means that the platform has greater transparency as compared to traditional financial institutions, making it easier to track and trace the flow of crypto assets. Binance also set an important standard by publishing its proof of reserves, cold and hot wallet information, and six commitments to a healthy exchange.
Over time, Binance continued to enhance its restrictions on US persons, including by implementing IP and mobile carrier blocking and by working with external experts to review its geofencing capabilities. Binance’s efforts to off-board and restrict US users were implemented over time and were not perfect in the early years of this effort.
Binance also addressed concerns about sanctions compliance, stating that it has voluntarily put in place measures to avoid involvement in transactions that would be barred by the trade restrictions and economic sanctions laws of several countries and organizations, including the United States, were those laws to apply to Binance.
The exchange also highlighted its engagement with highly reputable compliance experts, including experts in the United States, to ensure compliance with Financial Action Task Force (FATF) standards and to review its compliance protocols.
In conclusion, Binance emphasized that it remains committed to its core mission of financial inclusion and increasing the freedom of money globally through its compliant, user-focused, and secure platform and products. The exchange has evolved from a crypto-to-crypto exchange to a global blockchain ecosystem spanning trading services, infrastructure solutions, educational resources, research, charitable programs, and investment incubation initiatives.
Binance’s leadership is guided by its Global Advisory Board, on which sit industry leaders and former senior government officials from around the world, including Max Baucus (former U.S. Senator from Montana) and David Plouffe (former senior advisor to President Obama).
- Breaking: CFTC Files Complaint Against Binance And Founder Over Alleged Violation Of US Regulations
- CFTC Declares Bitcoin, Ethereum, And Litecoin As Commodities In Binance Indictment, Contradicting SEC’s View On Security Classification
- Binance Saw An Increase In Withdrawals Following The CFTC’s Lawsuit Against The Exchange
- Massive Outflow Of Crypto From Binance Following CFTC Charges