Binance was investigated by the U.S. Department of Justice and the Internal Revenue Service
Compared to the previous period, the recent trend of cryptocurrency is not good, and there are many unfavorable factors in the market that have affected the cryptocurrency market.
Recently, Binance, the world’s largest cryptocurrency exchange, is being investigated by the U.S. Internal Revenue Service and the Bureau of Justice. The executives responsible for money laundering and tax crimes are very interested in Binance’s business.
Founded in 2017, Binance is registered in the Cayman Islands and has an office in Singapore. It is a favorite place for tax avoiders. Considering the nature and role of cryptocurrency, it should not be surprising if someone wants to use it to avoid taxation and facilitate illegal activities, so it is not strange to be investigated.
“Binance Trading App on mobile phone” by wuestenigel is licensed under CC BY 2.0
According to Bloomberg, the US Commodity Futures Trading Commission (CFTC) has been investigating whether Binance allows Americans to conduct illegal transactions on its platform, allowing them to purchase cryptocurrency-related derivatives. Normally, U.S. residents can only purchase such products from companies registered with the CFTC. Binance has stated in the past that they will indeed prevent Americans from conducting illegal transactions on its website and will issue warnings that the accounts of violators will be frozen.
The cryptocurrency analysis company Chainalysis reported that in 2019, Bitcoin was involved in criminal transactions worth $2.8 billion, of which about $756 million were conducted through Binance. This ratio is not low. In response to related news, Binance responded that it attaches great importance to legal obligations and cooperates with regulatory and law enforcement agencies in a collaborative manner. Binance has been working hard to establish a strong compliance program.
Up to now, the official has not announced a formal investigation. However, based on past circumstances, this is likely to be a prelude to a more in-depth investigation of Binance’s financial situation and possible criminal activities.
