Binance admitted to faulty regulatory compliance at the company a few years ago. Speaking at an interview, Patrick Hillmann, Chief Strategy Officer at Binance, noted that during the earlier days of Binance, there were some gaps connected to the regulatory compliance of Binance.
He revealed that the gaps were due to the pressure mounted on the team, which was a small team, during its earlier days of managing global expansion, compliance, and cybersecurity. “As a result, there were some gaps in our compliance system in the first two years,” he explained.
Binance discussing with regulators
The Chief Strategy Officer further highlighted that Binance has since been in touch with regulators to resolve the matter and if there are fines involved, they will be addressed. Patrick noted that all actions were taken to have a secure platform for users.
While he declined to talk about ongoing discussions Binance is having with regulators, he affirmed that the relationship between Binance and regulators has been positive and mutual.
To strengthen its team and compliance with global practices, the largest exchange hired Noah Perlman, a former employee at Gemini Trust, as its Chief Compliance Officer, and has also increased the size of the compliance team to over 750 people.
The SEC, Binance, and BUSD
The crypto industry had a downturn in 2022 due to the collapse of several firms such as Terra blockchain, Celsius, Three Arrows Capital, and FTX. These fallouts have increased surveillance of regulators over crypto firms, and Binance is not left out.
Binance in January 2023 was linked to Bitzalo, a digital asset service provider accused of facilitating illegal trades in millions of dollars. Following that in the first two weeks of February 2022, the New York regulator clamped down on Paxos, the issuer of Binance-based stablecoin, BUSD. According to a statement from the SEC, the SEC has alleged that BUSD is an illegal security.
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