Binance, the world’s largest digital currency exchange, is reportedly expecting to pay monetary penalties in order to settle US regulatory and law-enforcement investigations of its operations. This, according to the company’s CSO (as reported by the WSJ).
Over the past five years, Binance has managed to quickly expand operations and began as a business that was led by experienced software engineers who were not too familiar with applicable laws and regulations – which aim to address the risk of illicit/fraudulent activities, money laundering, and economic sanctions, Patrick Hillmann stated.
Binance has reportedly been working to close the gaps in its initial compliance efforts, he revealed, however still expects regulatory authorities might impose fines for its conduct in the past few years.
Hillman added that Binance is expecting to face considerable fines. The company CSO also confirmed that the exchange is “working with regulators to figure out what are the remediations [they] have to go through now to make amends for [previous violations].”
Although regulatory scrutiny of Binance’s operations has increased after its competitor FTX’s spectacular collapse last year, Binance has also been under investigation by the US Attorney’s Office for the Western District of Washington. These probes have been ongoing since around 2018, according to reports from Reuters and other sources.
The US Department of Justice (DOJ) has sent at least two trading companies subpoenas in the past few months. The DOJ has reportedly requested records of their previous business agreements with Binance.US.
In December of last year, Reuters had reported that federal authorities had been discussing a possible settlement with Binance. The authorities had been trying to determine if the evidence they had obtained would be enough to bring forth charges against the digital asset exchange and company executives, which may include Binance CEO Changpeng Zhao.
Hillman told the WSJ that he is now expecting the outcome of the probe (however, he didn’t actually name which particular investigation he had been referring to). According to the company CSO, it would “likely” be a monetary fine, but it might be more.
Hillman did not mention what the expected amount of the fine would be or when it would be imposed. He said that he was “highly confident and feeling really good about where those discussions are going.”
Hillman further noted that it will be “a good moment” for their firm since it allows them to put such issues behind them.