The cryptocurrency space is no stranger to regulatory hostility and crackdowns by government agencies. Lately, multiple centralized crypto exchanges have come under regulatory scrutiny in a bid to mitigate risks like money laundering and terrorist funding has this has somewhat damaged the credibility of these institutions as a whole.
The Forbes report
Binance, the world’s largest cryptocurrency exchange by volume, has found itself amidst a major controversy after Forbes writer Michael Del Castillo alleged that Binance Holdings Limited had devised a major plan to deceive the regulators in the US and avoid regulatory scrutiny while continuing to profit from the US market.
The report cited a leaked document acquired by Forbes, which alleges that Binance was funneling revenue via an unnamed US company, referred to as the “Tai Chi entity,” and even advised US customers to use of a “strategic” virtual private network to bypass the regulatory agencies like the SEC in America.
According to the Forbes report, Binance’s American subsidiary Binance.US allegedly operates in a manner similar to that of the “Tai Chi” network.
Binance.US denies allegations
However, Binance has dismissed these allegations claiming that the company found no records of anyone at Binance.US receiving these alleged documents, a Binance.US spokesperson told The Daily Chain.
“We have no record of anyone at Binance.US ever receiving that alleged presentation. Furthermore, the Forbes article contains multiple inaccuracies that indicate that its claims are without merit,” the spokesperson wrote.
The spokesperson stressed on the fact that Binance.US is an independent and separate company and has no ownership ties with Binance Holdings, adding that the platform has focused its efforts on prioritizing regulatory compliance.
“We have prioritized regulatory compliance, both for the benefit of our users and to ensure the future success of our platform. We have a robust AML Program and Digital Asset Framework to approve new projects on our platform,” the spokesperson continued.
“In the last 13 months, we have built strong relationships with regulators, invested in compliance infrastructure, and we only operate in jurisdictions where we have licenses. “
Binance CEO and founder Changpeng Zhao had also argued that the Tai Chi documents were “not produced by a Binance employee,” while the Forbes report argued it was an employee named Harry Zhou.
No details regarding this mysterious employee were revealed in the statement. The Daily Chain has reached out to Binance.US for further clarification.