Binance responds to investigation by the U.S. Department of Justice and the IRS: Will cooperate with regulatory and law enforcement agencies in investigations

According to Bloomberg, the U.S. Department of Justice and the Internal Revenue Service are investigating the cryptocurrency exchange Binance, which involves money laundering and (illegal) tax evasion, but Binance has not yet faced any charges or fines. Binance CEO Changpeng Zhao said that it strictly abides by U.S. rules, prevents Americans from accessing its website, and uses advanced technology to analyze transactions for signs of money laundering and other illegal activities.

In response to this report, Binance officially tweeted, "The company takes its legal obligations very seriously and works with regulators and law enforcement in a collaborative manner. The company has been working to establish a compliance program that includes anti-money laundering principles and tools used by financial institutions to detect and deal with suspicious activities. At the same time, Binance has a good record of assisting law enforcement agencies around the world, including the United States."

Earlier in March, Bloomberg reported, citing people familiar with the matter, that the U.S. Commodity Futures Trading Commission (CFTC) was investigating whether the digital currency trading platform Binance allowed Americans to buy derivatives. Unless companies that provide such products are registered with the CFTC, U.S. residents are not allowed to buy such products. Binance said it takes compliance with the rules "very seriously" and has not been accused of any wrongdoing.