To some up this news article for you, leading cryptocurrency trading platform Binance is in a little bit of trouble with the US Justice Department and Internal Revenue Service (IRS). This is a part of the new President Joe Biden’s efforts to root out illicit activity, thriving in the hyped but mostly unregulated cryptocurrency market in the USA.
Binance Holdings Ltd. is under investigation from these officials in this probe against money laundering and tax offenses. These officials have asked a few individuals for a little bit of information about Binance’s business. These individuals have passed on the same to major news channels but have asked not to be named in this probe.
Binance is led by Changpeng Zhao, a tech executive who promotes tokens on Twitter and in various interviews from time to time. The crpto exchange has grown leaps and bounds to become the world’s largest cryptocurrency exchange, bypassing all rivals since Zhao co-founded the platform way back in 2017.
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While it’s incorporated in Cayman Islands, Binance has an office in Singapore and has operated mostly outside the scope of government insight. Chainalysis Inc. is a blockchain forensics company and they have many US federal agents as their clients. From transactions examined by them, they concluded last year that funds for criminal activity flowed through Binance more than any other crypto exchange.
“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 and tools used by financial institutions to detect and address suspicious activity,” said Binance spokeswoman Jessica Jung in an email statement.
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Even as the crypto trading industry is seeing a meteoric rise, the worry is that these transactions are done to conceal illegal activities. Additionally, Americans making fortunes from crypto trading are free from all forms of taxation, which is another problem for the authorities. For all updates on cryptocurrencies and on the money laundering probe on Binance, stay tuned to ReadScoops.com…
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