US government investigates Binance accounts for money laundering

Cryptocurrencies are nice and nice, but the gap in regulations the crypto market is relatively easy to abuse by criminals. In addition to hacking, the young market still makes money laundering relatively easy. The US government is investigating which investment funds launder money via exchanges, which is why Binance has been called on to explain things.

Binance questioned about money laundering companies

Binance is an international company, which is why it gets into trouble with regulators in some countries.

As a result, it has not only been investigated by American policymakers, but also by French, Italian and Dutch authorities, among others. The company received a fine of millions from De Nederlandsche Bank (DNB) because it was not registered with the central bank, while it does allow Dutch people to create an account.

The Washington Post writes that Binance is in talks with the Seattle State Department of Justice. Binance would have become a haven for hackers, fraudsters and drug dealers through its business operations. They can launder money more easily via the platform. According to the ministry, there are connections with the Russian dark web Hydra.

There is also criticism of Binance’s lack of transparency. So it is, according to blockchain analytics company Nansen not clear what Binance’s corporate structure looks like, and therefore not where exactly the capital is located. The criticism the company received for its Proof-of-Reserves revealed the same problem. It should be emphasized that Binance has not been sued. As a user, you will therefore not be directly affected by it, although regulations will probably become a lot stricter.

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Regulators are happy with blockchains

Regulators and the fight against crime to have a huge advantage thanks to the crypto market. Most blockchains are very transparent. Nowadays it is increasingly required to identify yourself as a trader at crypto exchanges, which means that staying anonymous when criminal is next to impossible.

Transparency allows criminal practices to be traced back after they have already happened. This will be exactly why the United Nations and Interpol are promoting blockchain as a fighting technology.

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