Yesterday, May 13, it became known about the beginning of an investigation by the Department of Justice and the US Internal Revenue Service in relation to the world's largest cryptocurrency exchange Binance. State authorities conduct inspections for violations in the field of combating money laundering and tax laws. So far, no charges have been leveled against the site.
Binance Co-Founder and CEO Changpeng Zhao criticized the headlines about the investigation.
The head of the site noted that in fact, BINANCE is cooperating with law enforcement agencies "in the fight against bad players," however, the media presented this information in a negative light.
Binance has already come to the attention of US regulators. In March 2021, the site became a figurant of the investigation Futures Trading Commission (CFTC). The regulator studied the work of the company for the admission of US residents to trade in crypto derivatives in the absence of an appropriate license. Then Changpeng Zhao made a similar statement that Binance cooperates with regulators around the world and strictly complies with all regulatory requirements.
In March, we joined Binance as advisors Former US Senator from Montana and US Democratic Party Max Baucus; Former Executive Secretary of the Financial Action Task Force on Money Laundering (FATF) Rick McDonell; and Former Head of the Canadian FATF Delegation Jose Nado. It is the FATF immigrants who should help the marketplace in the development of systems to combat money laundering and terrorist financing.
What threatens Binance
The worst possible scenario for such a case in court could lead to the exchange's inability to work with American residents. But none of the worst scenarios, even the worst, is about the complete closure of the exchange. If, nevertheless, some violations in the activities of Binance are found, they will have to make certain adjustments in their activities and, possibly, pay a fine. After that, the site will be able to continue operating normally.
Large companies in the United States are regularly attacked in court, audited, and attacked in the media. The best experience it all, develop and become bigger. There are many such examples: Google, Amazon, Facebook - all have experienced their share of lawsuits, checks and showdowns in the media, but these are the world's leading companies.
Binance Coin reaction
Amid news of an investigation into the crypto exchange, the value of its Binance Coin (BNB) token fell 13% (to $ 526). On May 14, its price has recovered and is $ 605.
4-hour BNB / USDT chart. Source: TradingView
In the long term, this investigation should not add negative factors for the market. The main message of the accusation is that the site was involved in some of the processes of money laundering through cryptocurrencies, but this could happen through any resources. The Binance Coin rate will continue to grow, and in the future, the effect of the news about the closure or freezing of the investigation will only give a new local impetus to growth.
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Resources
1) https://www.bloomberg.com/
2) https://twitter.com/cz_binance/status/1392898786607828995
