Binance has hired Nils Andersen-Röed from Europol to join the exchange’s investigative team.
Appointment of Andersen-Röed
Crypto exchange Binance has the appointment announced by Nils Andersen-Röed, a Dark Web specialist formerly of Europol.
“Nils joins an already strong team of security specialists who are working hard to ensure Binance remains the most secure crypto ecosystem.”
Binance said in a statement about the appointment.
“After working in law enforcement for many years, I am excited to take on new challenges in the Binance investigative team. Over the years I have learned that simply arresting criminals is not enough to fight crime. You also have to look more broadly at the entire ecosystem in which they operate.”
So says Andersen-Röed.
Andersen-Röed will focus on identifying hackers and criminals on the exchange’s platforms. In addition, he is involved in protecting user funds and assisting law enforcement agencies in their investigations.
Andersen’s appointment does not come at a remarkable time. Indeed, Binance is embroiled in a wide range of regulatory issues around the world. The appointment of the specialist shows that Binance is taking initiative to stop money laundering and criminals.
Binance Regulatory Controversies
Throughout 2021, crypto’s largest exchange has sparked the ire of financial services regulators around the world.
Since June, De Nederlandsche Bank and the Japanese Financial Services Agency have been warning consumers about the crypto exchange. The Cayman Islands authorities and the Italian Consob said Binance was not licensed to operate in their countries. The Malaysia Securities Commission has cracked down on the exchange over illegal activities in the jurisdiction.
On the same day as the Cayman Islands announcement, the Thai Securities and Exchange Commission filed a criminal complaint against Binance. She claimed that the exchange was operating as a digital asset company without a license
In the UK, the Financial Conduct Authority has taken a hard line against Binance Markets Limited. This is a Binance entity that was acquired to get a crypto exchange in the UK. The FCA issued a warning in June, saying it had a major problem with the exchange’s lack of headquarters.
Regulatory issues also arose for the company’s CEO, Changpeng Zhao (CZ). In Singapore, where CZ lives, the Monetary Authority of Singapore said Binance is not yet licensed. While an application is pending, their applications have been rejected at similar companies.
Earlier this month, Singapore also added Binance.com to its Investor Alert List.
Biggest change
In July, Binance added Jonathan Farnell, formerly of eToro, as the exchange’s new compliance director. Last month, the exchange required all users to complete a KYC (Know Your Customer) verification process before using Binance’s services.
Andersen-Röed’s appointment is the latest in a series of steps to strengthen the exchange’s compliance regime. However, the most important change came yesterday. Yesterday, CEO Changpeng Zhao admitted the need for a centralized headquarters.
“We have come to realize that we need a centralized entity to work well with regulators”
The admission marked a significant change for CZ, which had previously maintained that Binance was decentralized. He said everyone’s definition of a company’s headquarters was different.