{"id":56374,"date":"2022-01-21T19:15:56","date_gmt":"2022-01-21T17:15:56","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=56374"},"modified":"2025-09-04T06:04:16","modified_gmt":"2025-09-04T03:04:16","slug":"reuters-accuses-binance-of-withholding-information-from-regulators","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/reuters-accuses-binance-of-withholding-information-from-regulators\/","title":{"rendered":"Reuters accuses Binance of withholding information from regulators"},"content":{"rendered":"

Binance repeatedly concealed information from regulators, flouted KYC<\/span> procedures, and acted against the recommendations of its own compliance department. This is according to a comprehensive Reuters<\/a> investigation.<\/p>\n

Sources told the agency that Binance rejected the idea of opening a Malta-based unit and obtaining a licence from the local financial regulator when it learned of strict AML<\/span> protocols and disclosure requirements.<\/p>\n

In 2019 the exchange privately notified MFSA<\/span> that it had abandoned its plan, yet continued to claim that its activities \u201care regulated by Maltese law.\u201d In 2020 the regulator said Binance did not have a licence to operate in the jurisdiction. The information was soon confirmed by the company\u2019s CEO, Changpeng Zhao.<\/p>\n

The agency noted that Binance \u201cat least four times\u201d declined to provide detailed reports on its operations when regulators or partners requested the information. In particular, the requests concerned the corporate structure and the company\u2019s finances.<\/p>\n

For example, when Binance began offering tokenised shares in Italy, the local regulator \u2014 Consob<\/span> \u2014 required the exchange to ensure the product complied with local law, as the instruments were treated as financial instruments.<\/p>\n

In response to the regulator\u2019s request, Binance\u2019s chief compliance officer Samuel Lim said the company does not provide \u201cinvestment services,\u201d and that its activities are regulated by Swiss law. In a conversation with Reuters, a Swiss financial regulator official stressed that the local unit of the exchange \u201chas no licence.\u201d<\/p>\n

Journalists said that documents obtained by Reuters reveal concerns that Binance staff, including Lim, repeatedly raised about lax KYC checks. Several Reuters sources said they told Zhao.<\/p>\n

Yet the head of the exchange allegedly wanted \u201cKYC to be abolished,\u201d insisting that users should be able to \u201ctrade within ten minutes of signing up.\u201d<\/p>\n

Sources said Lim lacked the competence to run a compliance department of such a large operation. One former employee said that top executives \u201cfeared\u201d Zhao and yielded to his requests.<\/p>\n

In at least three countries, including Russia and Ukraine, Binance operated contrary to its own risk-scoring. The latter two were assigned an \u201cextreme\u201d risk level. Such a rating means the firm should not serve clients in those jurisdictions.<\/p>\n

Reuters, citing the documents in hand, alleges that these ratings were \u201cmanually adjusted\u201d \u2014 the countries were assigned a \u201chigh\u201d risk level.<\/p>\n

ForkLog sought comment from Binance representatives but did not receive a prompt reply.<\/p>\n

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FUD. Journalists talking to people who were let go from Binance and partners that didn\u2019t work out trying to smear us. We are focused on anti-money laundering, transparent and welcome regulation. Action speaks louder than words. Thank you for your unwavering support! \ud83d\ude4f<\/p>\n

\u2014 CZ \ud83d\udd36 Binance (@cz_binance) January 21, 2022<\/a><\/p><\/blockquote>\n