Binance.US responds to senators’ letter on “potentially illegal” activities
Binance.US has responded to a letter printed by U.S. senators on March 2 by professing compliance and stating that it’s going to reply questions instantly.
Binance acknowledges senators’ letter
On March 2, numerous senators alleged that Binance.US has engaged in “doubtlessly unlawful” exercise and requested the agency to reply a number of questions.
A Binance.US spokesperson mentioned in a press release to CryptoSlate:
We welcome engagement with policymakers and stay up for responding to the [senators’] requests.
That spokesperson added that Binance.US is “assured within the energy of [its] operations” together with its anti-money laundering (AML) procedures and different compliance applications.
Binance.US additionally described two insurance policies that it stands by: it mentioned that it maintains 1:1 reserves (described elsewhere as which means that the corporate has ample crypto to cowl all consumer balances) and says that it doesn’t lend or commerce buyer funds.
Senators ask for trove of knowledge
The lawmakers chargeable for the unique letter are Senators Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.), and Roger Marshall (R-Kan.).
Their letter alleges that Binance.US has tried to evade U.S. regulators, has facilitated cash laundering and sanctions avoidance, and has lacked transparency.
The senators particularly requested Binance.US and Binance subsidiaries to supply stability sheets, U.S. customers knowledge, and know-your-customer (KYC) and AML data.
The letter additionally asks in regards to the relationship between Binance.US and Binance and inquires about anti-KYC statements from Binance CEO Changpeng Zhao. It moreover requests details about Binance’s supposed ‘Tai Chi’ technique doc, which is alleged to advocate for creating an entity to precise false curiosity in international laws.
The senators’ letter didn’t particularly tackle a current controversy round Binance.US’s alleged transfers to Advantage Peak buying and selling agency. Nevertheless, the letter does ask Binance.US for an inventory of U.S.-based platforms which have used its companies — a query that will presumably shine some gentle on its previous relationship with Advantage Peak.
Beforehand, on Feb. 18, Senator Roger Marshall mentioned that U.S. Congress might maintain an inquiry into Binance.US over Advantage Peak and different points.