In a recent interview with Tony of Thinking Crypto, Ron Hammond from the Blockchain Association discussed the changing relationship between Binance, Tether, and regulatory authorities in Washington, DC. The conversation focused on Binance’s settlement with the DOJ and the ongoing concerns surrounding Tether.
Binance’s Settlement with DOJ: A Turning Point?
Historically, Binance faced reputation issues in DC, leading to increased scrutiny and a letter from politicians French Hill and Senator Cynthia Lummis to the DOJ. However, a significant development occurred with Binance settling with the DOJ, marked by the stepping down of Binance CEO, Changpeng Zhao (CZ).
The discussion then turned to whether the settlement addresses all underlying issues. Hammond emphasized the DOJ’s concerns about money laundering and sanctions violations, which also apply to Tether.
Tether’s Ongoing Challenges and Reputation
Tether has been viewed negatively in DC due to issues related to audits and reserves, leading to doubts about the use of platforms like Tron and Binance for financing malicious activities.
Hammond quoted, “Tether was always, at least in DC, viewed pretty negatively as well, and I’d say that those are the last kind of two big holdups right now. For Tether, at least, the largest concerns usually start with the issues of audits and reserves.”
The interview also highlighted concerns from industry-friendly Republicans about the negative connotations associated with Tether.
Importance of KYC and AML Practices
The conversation touched upon the critical importance of stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) practices, areas where Binance had previously faced charges from the DOJ for lax enforcement.
Hot Take
In conclusion, the evolving dynamics between Binance, Tether, and regulatory authorities in DC are undergoing significant changes, with the recent settlement between Binance and the DOJ marking a turning point. Tether continues to face ongoing challenges, particularly related to audits and reserves, despite efforts to address past concerns. The industry’s focus remains on the importance of KYC and AML practices in light of these developments.
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