Binance Could Have Avoided a Massive Fine
Date: 2023-12-06 Author: Dima Zakharov Categories: BUSINESS, IN WORLD
According to CFTC representative Kristin Johnson, Binance's fine increased because the platform ignored these violations. As part of a deal with the U.S. government, Binance admitted guilt in money laundering and sanctions violations and paid a $4.3 billion fine. However, this fine could have been avoided.
Meanwhile, the new CEO of Binance, Richard Teng, refused to disclose the location of the global headquarters during his participation in the Financial Times summit on cryptocurrencies and digital assets. The European headquarters is said to be in France, and the Middle East headquarters in Dubai, with the global headquarters to be revealed "in due course."
Previously, Changpeng Zhao claimed that Binance had no global headquarters. Richard Teng also mentioned that Binance had been audited in the jurisdictions where it operates but declined to name the auditing firm.
Teng acknowledged the mistakes made by the company, stating that they have resolved these issues with U.S. agencies. He emphasized the company's commitment to becoming user-centric while ensuring compliance with regulations. Teng, with prior regulatory experience, faces the challenge of rebuilding trust in the exchange, which relies heavily on institutional investors.
Among Teng's tasks is appointing an independent observer to scrutinize the company for the next five years, guiding Binance through the Securities and Exchange Commission lawsuit, and managing Zhao, who retains a controlling stake in the company.
