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It’s becoming another amazing year for crypto. Within five months, meme money Dogecoin has seen the trees grow, PayPal has opened cryptocurrency trading and Tesla did a turn around lighting Bitcoin payments. Adding to the change, conflicting reports say the world’s largest currency exchange, Binance, are being investigated by the United States Department of Justice and the Internal Revenue Service (IRS).
According to Bloomberg, administrators who want to know how crypto is used in money laundering asked more questions from those who know what Binance does. However, the publication did not confirm whether the investigation was related to a violation of the law, saying it did not question all of the sources of the “error.”
Binance CEO Changpeng Zhao was quick to address his side. Without mentioning the story, he wrote that the “story” misrepresented his company. According to Zhao, Binance “teamed up with law enforcement agencies to fight the bad players,” adding that the issue made it “seem like a bad thing.”
However, the fact is that the cryptocurrency exchange – which is not banned from operating in the US – has been under investigation for some time. A recent report from the blockchain forensics firm Chainalysis Analysis said Binance was a go-to destination with no illegal funding in 2019.
Supervisors are also investigating whether Binance allowed Americans to engage in illegal trade, sources said Bloomberg. It is illegal to do business in the US because it provides protections that are not registered with the Commodity Futures Trading Commission. Although the company has repeatedly denied this, crypto issues the site says their bans in the United States could be ignored. Bloomberg adds that Binance also advised Americans to use VPN encryption where they want to exchange with them.
The company, which is involved in law enforcement agencies, is coming to the fore to scrutinize cryptocurrencies. U.S. officials are concerned about the lack of control over electronic devices, fearing that they could be used to cover illegal activities, including drug paraphernalia. So far, the IRS has said he says is expanding its ability to track down debtors on cryptocurrencies to adopt cryptocurrency currency. If you ask experts, they will tell you that policymakers face endless challenges to play with technological know-how.
Binance was established in China, but was forced out of the country due to the crypto trade ban in 2017. It is now integrated into the Cayman Islands, according to Bloomberg, a popular tax society used by corporations and wealthy individuals to hide their money.
Yesterday, the company reported on Twitter that it was complying with US regulations. “We take our legal responsibilities seriously and engage with regulators and law enforcement partners in concert,” Binance said. “We have been working hard to find the next robust program that incorporates anti-money laundering and tools that financial institutions use to detect and address uncertainties.”
The company continued: “We have a reputation for supporting legal entities around the world, including in the United States.”
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