Binance Triumphs in Dubai with Regulatory License, Despite Co-Founder's Legal Woes
Summary:
Binance, the world's largest cryptocurrency exchange, has secured a crucial regulatory license in Dubai after co-founder Changpeng Zhao relinquished his voting rights in the local entity. Since its brush with regulatory issues following the FTX collapse, this regulatory approval serves as a significant victory for the company. Earlier, Binance settled federal charges for $4.3 billion over inadequate anti-money laundering practices, a violation of the Bank Secrecy Act. Zhao admitted guilt to one count of violating AML guidelines and resigned while facing sentencing on April 30. This story is developing and further updates are expected.
Binance has obtained a much-anticipated regulatory permit in Dubai, solidifying its position as the world's biggest cryptocurrency exchange. Binance's Virtual Asset Service Provider (VASP) permit was approved once co-founder Changpeng Zhao renounced his voting rights in the exchange's local subsidiary, as confirmed by Binance CEO Richard Teng to Bloomberg on April 18. It was a prerequisite by the Virtual Assets Regulatory Authority (VARA) for Zhao to surrender his voting rights in Dubai's Binance FZE to grant the VASP permit, as per undisclosed sources.
Obtaining the total regulatory permit marks a significant victory for Binance, which has been under regulatory observation since the FTX collapse. In November 2023, Binance consented to a substantial $4.3 billion settlement with U.S. authorities to rectify federal charges concerning inadequate anti-money laundering (AML) protocols, breaching the Bank Secrecy Act.
Zhao admitted guilt to a single felony charge, specifically the failure in maintaining sufficient AML practices, and stepped down in line with the plea agreement. Zhao is due for sentencing on April 30, and he could face up to 18 months in jail. In a related development, the top five BTC miners have refrained from selling despite Bitcoin halving.
This news piece is still progressing, and more information will be provided as it arises.
Published At
4/18/2024 11:03:34 AM
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