Binance is on a hiring spree to add compliance teams as the company faces US regulatory scrutiny on money laundering and tax evasion.
Changpeng “CZ” Zhao, CEO of the world’s largest cryptocurrency exchange, said his #1 priority is to hire people with regulatory and compliance experience. The company also seeks regular meetings with US authorities.
“I’m spending almost all of my time” pursuing compliance, Zhao said in an interview with Bloomberg TV. “I’m not really involved in the day-to-day trading of the stock exchange.”
Regulators around the world are taking a closer look at the free encryption industry, which has soared as Bitcoin prices soared to record levels this year. US authorities have long worried that criminals are using encryption swaps to hide transactions related to everything from drug trafficking to cyber ransomeware attacks. Bitcoin price in India was at Rs. 35.32 lakhs from 10am IST on August 18th.
The Justice Department has opened an investigation into Binance’s operations, and US officials have expressed concern that cryptocurrencies are being used to conceal illegal transactions, including theft and drug deals. Several countries also announced surveys and demanded that Binance affiliates cease operations within their borders.
On the pending US cryptography rules, Zhao added that he was “very confident” that Securities and Exchange Commission chairman Gary Gensler “will do the right thing.”
“Gary is one of the most experienced people in the cryptographic regulatory space,” said Zhao.
– With the help of Justina Lee, Joanna Ossinger and Francine Lacqua.
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