US Government Cracks Down on Binance
The US Department of Justice is cracking down on virtual currency firms after issues with Binance.
More like a warning, Yellen highlighted the need for compliance in the virtual currency industry, noting that compliance is required to reap the benefits of affiliation in the US financial system. The announcement came shortly after the DOJ convicted Binance guilty of money laundering and many other charges.
Massive Penalties Imposed on Binance
A record $4.37 billion penalty is being imposed on Binance for severe breaches of anti-money laundering (AML) and sanctions regulations.
Binance, responsible for 60% of global virtual currency spot trading, admitted willful failure to implement an effective AML program, including Know Your Customer procedures, and to report suspicious transactions.
Binance CEO Changpeng Zhao has reportedly announced his departure from the CEO post and was in custody. He secured his release from custody by paying a substantial bail amount, reaching up to $175 million.
Binance CZ Steps Down
Binance CEO Changpeng Zhao has resigned and pleaded guilty to violating U.S. anti-money laundering laws.
The $4.3 billion settlement includes Zhao personally paying $50 million.
In a social media post, Zhao announced his resignation and left an emotional message for everyone. Accepting all the allegations, Zhao confessed that he made mistakes and he was solely responsible for the cause. Admitting his faults, he found the decision best for the exchange community.
Binance’s executive Richard Teng will take charge from now on.
Teng added that he would concentrate on reassuring users that they can remain confident in the financial strength, security, and safety of the company.
Following the charges on Binance, the broader crypto market saw a decline, with Bitcoin, Ethereum, and other cryptos dropping by 3%-4%. Binance’s native crypto BNB fell more than 12%.
Hot Take: Binance Faces Major Regulatory Challenges
Regulators around the world are cracking down on Binance, which has resulted in the departure of their CEO, Changpeng Zhao. This will likely have a significant impact on the broader cryptocurrency market and could change the landscape of the industry in the coming months.
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