Binance Embraces Regulatory Changes Following Record $4.3 Billion Settlement
Summary:
Binance's $4.3 billion settlement with the U.S in 2023 marked a milestone for the exchange, paving the way for anticipated regulatory changes, according to Catherine Chen, its Head of Institutional and VIP Services. This led to Binance agreeing to three years of independent compliance monitoring and a five-year U.S. Treasury monitoring agreement, a challenge Chen welcomes. Binance's co-founder, Changpang “CZ” Zhao, resigned as CEO and pleaded guilty to neglecting an Anti-Money Laundering program. Binance's new CEO, Richard Teng, stated that the company is now undergoing a maturity phase. He also disclosed plans for a global HQ. The U.S Securities and Exchange Commission continues its pursuit of charges against Binance, with the company denying all allegations.
Last year, Binance settled with the U.S for a record $4.3 billion which marked a significant milestone for the exchange. This heralded the arrival of an expected surge of regulatory scrutiny, a prospect which Catherine Chen, the Head of Institutional and VIP Services at Binance, looks forward to. Following the settlement, Binance agreed to the appointment of an independent compliance monitor for a period of three years and a five-year monitoring agreement with the U.S Treasury. On April 10, during a panel discussion at the Paris Blockchain Week, moderated by Kristina Cornèr, a senior editor at Cointelegraph, Chen expressed her view that these were positive developments. She dismissed potential concerns about Binance's performance under the agreement, insisting that the exchange had been planning ahead for this. In her words, it's a welcome challenge that would inarguably benefit the market. In November 2023, Binance, Binance.US, and their co-founder Changpang “CZ” Zhao agreed to pay a $4.3 billion settlement to the U.S government following charges of violating Anti-Money Laundering (AML) and sanction laws. Following these developments, Zhao consented to resign as Binance's CEO and admitted culpability for neglecting an AML program. He could potentially face up to 18 months imprisonment, with his sentencing slated for the 30th of April. Chen is of the opinion that the new regulations offer more clarity for Binance users and enhance their comfort and trust in the industry, the asset class, and its major participants. Chen extolled Binance's settlement while on stage at Paris Blockchain Week. Binance's newly appointed CEO, Richard Teng, during an interview on April 9 with CNBC, suggested the company was operating differently and has moved beyond its former methods as it enters a phase of greater maturity. On the same day, during an interview at Paris Blockchain Week, Teng revealed that the exchange, which CZ Zhao famously ran without a formal headquarters, is actively seeking a global HQ and considering a few jurisdictions. The U.S Securities and Exchange Commission continues to level charges against Binance, Binance.US, and Zhao. These are allegations that the company vehemently denies and includes the sale of unregistered securities and mixing of customer assets.
Published At
4/11/2024 2:56:49 PM
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