Binance and anti-money laundering, CZ the accusations
Binance and its CEO Changpeng Zhao they again ended up in the eye of the storm for a Reuters article for the anti-money laundering procedure S.eguite from the exchange. “FUD” was CZ’s comment on the news reported by the agency.
Anti-money laundering, riots accuse a Binance
It all starts with an article by Reuters that Binance could weak controls on its customers as regards the anti-money laundering regulations. In addition, it should not have a real registered office and this makes it so that it is not clear which licenses to hold Binance to operate.
It is known for sure that after the restrictions imposed by China in 2018, Binance had to move from the country where it was born, and CZ had initially opted for Malta. But currently Malta is not the headquarters of the exchange, because the island would have had a very strict anti-money laundering legislation or at least that’s what Reuters claims.
Reporting testimonials from former Binance employees and former partners, the article argues that Hidden Binance got information to authorities, che the same employees feel said concerned about mild KYC procedures, that the exchange continued to procure customers in countries with a high risk of money laundering, like Russia and Ukraine, against the advice of its own compliance department. One of the most serious events reported, cites the German police who have set their sights on Binance on at least a couple of occasions precisely because of suspicious transactions, one of which is attributed to a Islamic bomber accused of killing 4 people in Vienna in November 2020. There is to jump from the chair.
The same article also reports words from Binance representatives who instead argue that it represents how partial it is.
CZ’s answer
Changpeng Zhao he retorted harshly, via Twitter:
FUD. Reporters talking to people who were let go by Binance and partners who didn’t work by trying to defame us. We are focused on anti-money laundering, transparent and welcome regulation. Action speaks louder than words. Thanks for your unwavering support! 🙏
– CZ 🔶 Binance (@cz_binance) January 21, 2022
“FUD. Reporters talking to people who got fired by Binance and partners who didn’t work, trying to slander us. We are focused on anti-money laundering, transparent and welcome regulation. Action speaks louder than words. Thank you for your unwavering support! ”
FUD is an acronym that stands for Fear, uncertainty and doubt (fear, uncertainty and doubt) and indicates the tendency to Spreading false information, often to generate fear.
The Binance CEO’s contention is that Reuters matched partial information for the purpose of discrediting Binance and with it the entire crypto sector, which often comes (still) like from the mainstream media an area where dirty money circulates, as if crime was not supported even with dollars and checking accounts.
This is probably what indignant not only the CEO of Binance but also a community that instead seems to give him a lot of trust, as is evident in the messages arrived on Twitter that push CZ not to give up. Why you can stop Binance, but you cannot form the progress brought about cryptocurrencies, is the thesis of many.
The attack in Vienna
However, the part relating to i The exchange’s ties to the bomber who killed 4 people in Vienna in November 2020.
Reuters claims that German police have asked Binance for information on operations carried out by two people suspected of assisting the attacker, including operations in close-quarters with Binance. Reuters was unable to say how Binance responded to the German police. CZ took care of unraveling the mystery once again via Twitter:
A bad suspect creates a bank account and cryptocurrency exchange. The bank is ok, the cryptocurrency exchange is bad.
Binance uses the same or more powerful AML tools as banks.
Binance helps all law enforcement agencies around the world with their cases. We receive many letters of thanks. 🙏
– CZ 🔶 Binance (@cz_binance) January 22, 2022
“A suspect creates an account with a bank and a cryptocurrency exchange. The bank is ok, the cryptocurrency exchange is bad.
Binance uses the same or stronger AML tools as banks.
Binance helps all law enforcement agencies around the world in their cases. We receive many letters of thanks “
In fact, Reuters itself reported that the money transited on Binance came from a bank account (and it could not be otherwise). But the narrative has it that therethe bank is good and the exchange is bad.
Binance and regulation
Binance has actually repeatedly proven that collaborate with the authorities in cases of illicit use of the exchange. As well as working with the authorities to comply with the regulations. Even for this main platform accessible from the binance.com site, it cannot be used in some jurisdictions which instead have a dedicated platform. Eg The US and Turkey have Binance US and Binance TR respectivelyjust think to comply with the laws of the two countries.
Binance has also come to present some instruments deemed non-compliant with the laws, as happened for the stock token.
Changpeng Zhao himself has allowed that in the 4 years of life of the exchange, born in 2017, Mistakes have probably been made, but Binance wants to cooperate with the authorities and indeed it is certain that it will be regulation to make the sector flourish. Regulation, in fact, this unknown.