What is Binance accused of and how is its investigation shaking up the cryptocurrency world?

Binance, the world’s largest Bitcoin (BTC) and cryptocurrency exchange, is the subject of investigations and charges by authorities in five countries. A trend marked by allegations ranging from money laundering to illegal operations in some sectors.

Nigeria, the United States, France, Brazil and the Philippines are the countries that, to date, They launched an investigation and took action against Binance, From the arrest of officials of that company to blocking the exchange website for citizens.

In many cases this company is accused of promoting money laundering. he indicates The company itself has rejectedWhich has defended itself vigorously in the cases in which it has been mentioned.

What did Binance do to be targeted?

According to information presented by the authorities of the countries that are currently investigating the company Binance is accused of committing a highly punishable offence, Such as money laundering, terrorist financing, fraud and even illegal operations.

now in usaSince the beginning of last year, various government offices have accused the exchange of violating laws. The matter has even reached the court, where Binance founder Changpeng Zhao Pleaded guilty to charges of money laundering, sanctions evasion and fraud Introduced last year by the Justice Department. The executive also resigned from the post of CEO of the exchange.

Currently, Zhao faces 18 months or more in prison and the exchange could be ordered to pay $3 billion to the United States, bringing that country’s total sanctions against the company. More than USD 7,000 million. Already, to date, the United States has imposed the largest fine ever on a Bitcoin and other cryptocurrency company on Binance.

After the United States, other countries set their sights on Binance. For example, Nigeria first announced measures against the exchange in June 2023. But unlike the United States, he blamed that company and other exchanges for manipulating the naira, thereby contributing to the decline of the Nigerian currency in the foreign exchange market.

The interesting thing about the Nigerian case is Turns its attention to the cryptocurrency industry in search of those responsible On the devaluation of the Naira. This is instead of analyzing the impact that its own monetary policy is causing on the country’s official currency, as it has suffered a massive decline, losing more than 96% of its value.

Meanwhile, the Nigerian Securities and Exchange Commission accused the exchange of conducting operations that are not registered or authorized. In fact, the agency described the exchange’s activities as “illegal” and ordered the company Stop encouraging Nigerians to use the platform.

In Brazil, also in the middle of last year, Binance was among the companies being investigated for alleged involvement in pyramid scam schemes. Also, to help investors avoid suspension orders.

Recently Philippines ordered to block Binance website in the national territory and accused this company Of working illegally in the country. The Asian nation’s Securities and Exchange Commission stressed that the platform’s recurring access and exits are a “threat to the safety of Filipino investors’ funds.”

What evidence has been found?

Although Binance has been accused in various countries, it all depends on the investigation, in many cases, they stay on track,

And although Zhao pleaded guilty in the United States, it was believed from the beginning This was an agreement between them and the judge of that country A huge fine will have to be paid and the investigation will have to be closed.

The remaining countries that are currently investigating Binance have not yet provided (or made public) evidence that the company Acted as an operator for money laundering and other crimes, such as terrorist financing.

In fact, the exchange has even been praised for supporting freezing of accounts on the platform. linked to terrorist groupsLike Hamas, which went to war with Israel last year over deadly attacks on civilians.

In any case, the allegations against Binance have shaken the cryptocurrency ecosystem as it is the most important exchange house on the market. is even those who think that company The damage left by FTX can be as severe and widespreadWhich was once the biggest competitor of Binance.

Ever since the allegations against Binance started, the market have felt the panic that is caused by a possible decline in the exchange, So much so that important news about this company has had an impact on the price of cryptocurrencies, especially on the project’s own BNB.

Binance remains the biggest player in the industry

Now, despite the fact that Binance is facing scrutiny from many countries, the company remains the most important exchange house in the market. This is because, today, it aggregates the volume of transactions Which is more than US$30,000 millionI am agree with you data From CoinMarketCap.

To put it into context, Binance’s trading volume is much larger than its next direct competitors, Coinbase or Bybit. And between those exchanges Their trading volume does not exceed US$13,000 million.

Along with all this, significant penetration of exchange in the countries of the world has also been added, especially people from the Global South, who have learned to use the platform to work with cryptocurrencies. An example is Venezuela, where the rate of Binance users is increasing more and more.

Besides, Binance continues its expansion plans By obtaining licenses and authorizations to operate in certain areas, as reflected in their periodic notes and press releases.

In short, Binance has emerged as one of the cryptocurrency companies who wants to comply with global rules, That’s why recently seal SamSab Coalition, FATF’s global end-to-end compliance service provider, intended to combat money laundering and terrorist financing.


This note was written in collaboration with Marianella Vanci (editor).

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