Binance exchange is responding to an investigation by the U.S. Department of Justice and the Internal Revenue Service (IRS)

There is nothing wrong with Binance’s operations. The United States is investigating personal information regarding money laundering and tax violations as a way to root out illegal activities.

Shortly after the Bloomberg report, Binance CEO Changpeng Zhao commented on social media. Although he did not name the media outlet specifically, he said: “The article itself is not bad, but the title that it seems to be being investigated by the authorities is not good,” he insisted as follows.

In addition, Bainansu’s official Twitter account commented, Bloomberg News quoted the news, “We are very serious about fulfilling our legal obligations and establishing a cooperative relationship with regulatory authorities and law enforcement agencies.”

Binance has taken anti-money laundering measures and introduced tools that financial institutions use to help detect suspicious activity.

It has a strong record of supporting authorities around the world, including in the United States.

Strengthening U.S. Compliance

Binance will stop providing services to US users in 2019 to comply with regulations. However, even after that, the Binance website "Binance.com" still said that if you select "not a US resident", you can access it from the United States, pointing out a loophole. Currently, in addition to the original Binance, Binance.US also provides services in the United States in accordance with regulations.

Binance has recently stepped up its response to US regulation. In March, it hired former US Senator Max Baucus as a regulatory advisor. In order to build a strong relationship with US regulators and government agencies, Baucus will guide compliance and other policy policies and provide advice. It is also responsible for discussions with US agencies and plays an important role in building bridges with Binance.

In April, Binance.US announced that it would appoint Brian Brooks, former deputy secretary of the U.S. Comptroller’s Office, as CEO. In order to promote compliance and enhance products and services, it will work closely with industry stakeholders and policymakers to develop regulations so that Americans can benefit from cryptocurrency and blockchain.