Anti-Money Laundering Report
In reaction to a Reuters report into Binance released on Friday, Zhao, a Chinese-Canadian founder known in the crypto industry as ‘CZ,’ tweeted the tweet. Binance praised increased government control in public. According to the Reuters article, the firm operates its trade behind secret doors with insufficient client screenings and anti-money laundering (AML) systems. It is keeping details about its finances and the organizational setting is hidden from regulators. Binance, which was based in Shanghai at the time, began looking for a new operational headquarters a year after China began cracking down on digital currencies in 2017. In 2018, it chose Malta, an island nation sandwiched between Italy and North Africa.
The CEO, on the other hand, got apprehensive after learning about Malta’s stringent anti-money laundering (AML) policies. And the financial disclosures required to obtain a license to operate in the country. As per Reuters, Binance canceled its Malta ambitions in 2019, after reviewing hundreds of documents, including internal business messaging and regulatory correspondence, and conducting interviews with Binance’s partners, consultants, and former senior workers.
There’s More
According to Reuters, between May and July of last year, the company’s German employees receive 44 letters. They were from German authorities and legal firms alleging probable money laundering on the site. Binance responded to the news by saying that the material provided by Reuters was “hugely outdated. And, throughout many places, flatly inaccurate,” without elaborating. Also read: Elon Musk to Collaborate with McDonald’s Through Dogecoin
