US officials are currently looking into the activities of Binance and its users for possible illegal transactions
Binance, one of the world’s leading cryptocurrency exchanges, is being investigated by the United States Justice Department and the Internal Revenue Service (IRS). According to a report by Bloomberg, sources close to the matter revealed that officials of the government bodies are looking into Binance’s activities. This is an effort from the officials to limit illicit activities in the crypto market.
The officials in charge of the investigation usually handle money laundering and tax evasion cases. They are asking questions about Binance’s activities from knowledgeable individuals. Per the report, the officials are concerned that cryptocurrencies are being used to carry out illegal transactions such as those related to drugs and theft. The tax agency is concerned that Americans who made huge profits from the cryptocurrency market have been evading their taxes in recent years.
Although the officials are looking into the exchange’s activities, Binance hasn’t been accused of any wrongdoing at the moment. The company’s spokeswoman Jessica Jung commented that “We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion. We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”
This latest development comes two months after reports surfaced that the US Commodity Futures Trading Commission (CFTC) is investigating the possibility that the exchange is allowing Americans to trade derivatives linked to cryptos. Binance CEO Changpeng Zhao has always maintained that the cryptocurrency exchange operates in line with US regulations, preventing Americans from accessing crypto derivatives and using superior technology to detect money laundering transactions and other illicit activities.
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