Cryptocurrency exchange Binance has been under regulatory scrutiny in recent months, facing criticism from several countries, including the US. The exchange has now reportedly responded to criticism from three US Senators on the Senate Banking Committee who had written to Binance and Binance US about their operations. In their letter, the Senators accused the company of purposefully evading regulators, moving assets to criminals and sanctions evaders, and hiding financial information from customers and the public.
Binance’s response, however, failed to address the Senators’ concerns about the company’s financials. The response letter reportedly described the company’s compliance efforts but provided few details about its finances. The company emphasized that it has a team of 750 core and supporting compliance staffers, including former regulatory and law enforcement officials, and uses internal and third-party tools to monitor transactions in real-time.
The response also noted that Binance and Binance US are separate entities, contrary to suggestions in public reporting. However, the response did not provide information about the relationship between the two entities or any communications about alleged efforts by Binance CEO Changpeng Zhao to limit compliance.
Binance is one of the world’s largest cryptocurrency exchanges, with a reported daily trading volume of over $60 billion. However, the exchange has faced regulatory scrutiny in several countries, including the UK, Japan, and Germany, and has been banned in some countries such as China.
