Binance to Pay US Fines for Regulatory Probes – WSJ

• Binance is expecting to pay monetary penalties for regulatory probes and investigations.
• The firm has been working on patching compliance gaps and mistakes made earlier in its existence.
• US authorities have taken several steps to enforce regulations, which could have a deep-lasting chilling effect.

Binance to Settle Regulatory Probes with Monetary Penalties

Major crypto exchange Binance will likely pay monetary penalties to settle current investigations by the US authorities, according to the Wall Street Journal. Chief Strategy Officer Patrick Hillmann explained that the company is working on patching the compliance gaps and mistakes made earlier in its existence – but it is likely that it will be asked by the regulators to pay fines nonetheless.

Gaps Created By Fast Expansion

Hilman stated that these gaps occurred due to Binance’s fast growth, especially since the business was started by software engineers who were not knowledgeable about rules and laws addressing risk of bribery, corruption, money laundering, and economic sanctions. Bloomberg reported that Binance’s initially small staff was spread too thin as the exchange was working on international expansion, compliance, and cybersecurity – resulting in some gaps in their compliance system during their first two years of operations.

Penalty Amount Unknown

As for how much they’d have to pay or when for that matter, Hillmann could not say. However he added that Binance is “highly confident” about where discussions with US authorities are going and expects a good moment for their company once it is behind them.

Regulatory Landscape Unclear

However, the regulatory landscape in the US remains unclear – making it quite tricky for crypto businesses to maneuver. Hilman said it was a “very confusing time” for Binance trying to understand how regulators wanted this specific market overseen.

Authorities Taking Action

US authorities have taken several steps recently including blockchain infrastructure platform Paxos being subject of enforcement action from SEC – which could have a really deep and long-lasting chilling effect according to Hilman.

Binance to Pay US Fines for Regulatory Probes – WSJ
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