Binance is in the hiring frenzy to add compliance teams as the company faces a US regulator for money laundering and tax evasion.
Changpeng “CZ” Zhao, chief executive officer of the world’s largest cryptocurrency exchange, said his top priority is to hire people with compliance and regulatory experience. The company is also seeking regular meetings with US officials.
“I spend most of my time” with the compliance campaign, Zhao said in an interview with Bloomberg TV. “I’m not really involved in the day-to-day business of the stock exchange.”
Regulators around the world are taking a closer look at the free-running crypto industry, which was booming as Bitcoin prices hit record highs this year. U.S. officials have long been concerned that criminals are using crypto exchanges to disguise transactions associated with everything from drug trafficking to ransomware cyberattacks. Bitcoin price in India was Rs. 35.32 lakhs as of 10 a.m. IST on August 18th.
The Justice Department has opened an investigation into Binance’s operations and US officials have raised concerns that cryptocurrencies are being used to disguise illegal transactions, including theft and drug deals. Numerous countries have also announced investigations and require that Binance subsidiaries cease operations within their borders.
Regarding the pending crypto rules in the US, Zhao added that he was “pretty confident” that the chairman of the Securities and Exchange Commission, Gary Gensler, “will do the right thing”.
“Gary is one of the most knowledgeable people in the regulatory space on crypto,” said Zhao.
– With the support of Justina Lee, Joanna Ossinger and Francine Lacqua.
© 2021 Bloomberg LP
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