Binance says it is prepared to pay fines to settle claims by U.S. authorities

Binance expects to pay fines to settle claims by U.S. authorities. This was disclosed by Chief Strategy Officer Patrick Hillmann in an interview with WSJ.

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According to him, the exchange is discussing with regulators which aspects of its operations need to be improved to remedy violations committed in the early years. He noted that at the time the platform was run by programmers unfamiliar with anti-fraud, anti-money-laundering and other compliance rules.

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Hillmann declined to estimate the likely size of the fines. He said the company regards the negotiations as successful and hopes to reach an agreement with the authorities.

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According to sources, the U.S. Department of Justice is conducting an investigation into possible violations by Binance of anti-money-laundering rules. CFTC is examining the exchange’s proposal to offer derivatives to American investors without proper product registration.

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Hillmann emphasised that access to the exchange’s global platform is blocked for users in the United States.

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“This will be a good moment for our company, as it will allow us to put this behind us,” he commented on the prospects for a settlement.

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Representatives from Binance added that the approach of American regulators to market oversight remains very opaque.

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In February, the SEC filed charges against Paxos for involvement in the issuance and listing of the stablecoin Binance USD (BUSD). The agency considered the asset an unregistered security. Prior to this, the NYDFS initiated an investigation into the issuer of the “stablecoin.”

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The Kraken exchange settled charges brought by the SEC related to its staking program. The company agreed to shut down the service and pay $30 million in fines.

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Hillmann noted that recent enforcement activity by the regulator will have a genuinely deep, long-term chilling effect on the U.S. crypto industry.

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As noted, Jake Chervinsky of the Blockchain Association also evaluated the consequences of authorities’ actions in a similar vein. The expert proposed measures for the community to counter such policy.