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Cryptocurrency Platform Binance Tightens Money Laundering Controls Following Regulatory Pressure

FILE PHOTO: The Binance logo on its display booth at the Delta Summit in St Julian's, Malta, October 4, 2018. REUTERS / Darrin Zammit Lupi
FILE PHOTO: The Binance logo on their display booth at the Delta Summit in St Julian’s, Malta, October 4, 2018. REUTERS / Darrin Zammit Lupi

By Krisztian Sandor and Tom Wilson

FRANKFURT, Aug 20 (Reuters) – Top cryptocurrency exchange Binance said on Friday that it will require stricter checks on clients’ background to bolster anti-money laundering efforts, effective immediately.

Binance, the world’s largest platform, has come under pressure in recent months from regulators around the world, concerned about the possibility of cryptocurrencies being used to launder money and the risks to consumers from trading volatility. of cryptocurrencies.

The platform, whose company is registered in the Cayman Islands, has reduced its product offering, including leveraged trading and equity-linked tokens, and has said it wants to improve relations with regulators.

The prospect of cryptocurrency exchanges laundering money has long worried regulators, and U.S. Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde have been among the people who have spoken out your concern this year.

The Dutch central bank said on Monday that Binance was not complying with its laws against money laundering and terrorist financing.

Binance said on its website that users would have to complete a verification process to access its products and services. Those who have not done so will only be able to withdraw funds, cancel orders and close positions.

Until now, document-based identity checks on Binance were only required of users who wanted higher limits on trades. Now, users will have to upload an identity document, a driving license or a passport to prove their identity, Binance said.

Binance CEO Changpeng Zhao, a Canadian known by his nickname “CZ”, tweeted a link to Binance’s announcement, saying that “facts speak louder than words.”

(Reporting by Krisztian Sandor in Frankfurt and Tom Wilson in London; written by Tom Wilson; Edited by Rachel Armstrong and Elaine Hardcastle, translated by Michael Susin)

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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