Leaked Document: Binance Distracted the US Regulators by Establishing a Subsidiary in the US
According to a leaked document, cryptocurrency exchange Binance launched its subsidiary in the United States to distract the US regulatory authorities.
As per the Forbes’ leaked document, Binance rolled out a subsidiary, Binance.US, in 2018 in order to evade US regulations. The report claims Binance employed a “bait and switch” strategy in order to avoid strict policies imposed by the US regulators. It advised its potential users to prevent regional limitations in different ways such as VPNs.
Binance Avoids Anti-Money Law
Binance has even joined the Cornerstone Program of the Department of Homeland Security and distracted many other regulators. It has adopted very few regulations and has also exploited the anti-money laundering policies. The crypto exchange has deceived the legal authorities to use them in their favor.
According to Forbes’s report, the source behind is unknown, but the document is written by a former Binance employee known as Harry Zhou. After leaving Binance, Harry Zhou founded an OTC trading platform called Koi Trading.
Binance Rejects Allegation
Binance’s CEO Changpeng Zhao has rejected it and protested against it. Zhao said no current or former employee is involved in writing the false document. “Anyone can produce a strategy document, but it does not mean Binance follows them,” he said.
By clarifying its stance in rejection of allegation, Binance said it has fully complied with regulatory authorities and law enforcement firms. To resist the flow of anti-money laundering, the exchange is actively working with companies specialized in AML such as Elliptic and Ciphertrace.
Binance’s chief executive clarifies that the US. Binance is a genuine subsidiary with “very strong restrictions and operating procedures in place.”
However, Forbes has not yet shared the leaked document with the community, and it is very difficult to predict which side is authentic and correct. According to Forbes, it tried to take comments from the US regulators over this, but most of them have denied giving clear takes. FBI did not pass any comment over the allegation.
Only law enforcement agencies took access to the leaked document, and it may release to the public soon.