Binance.US has responded to a letter printed by U.S. senators on March 2 by professing compliance and stating that it’ll reply questions immediately.
Binance acknowledges senators’ letter
On March 2, varied 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 stated in an announcement to CryptoSlate:
We welcome engagement with policymakers and look ahead to 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 stated that it maintains 1:1 reserves (described elsewhere as that means that the corporate has enough crypto to cowl all person balances) and says that it doesn’t lend or commerce buyer funds.
Senators ask for trove of knowledge
The lawmakers liable 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 steadiness sheets, U.S. customers information, and know-your-customer (KYC) and AML info.
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 overseas laws.
The senators’ letter didn’t particularly handle a latest controversy round Binance.US’s alleged transfers to Advantage Peak buying and selling agency. Nonetheless, the letter does ask Binance.US for an inventory of U.S.-based platforms which have used its companies — a query that might presumably shine some mild on its previous relationship with Advantage Peak.
Beforehand, on Feb. 18, Senator Roger Marshall stated that U.S. Congress might maintain an inquiry into Binance.US over Advantage Peak and different points.
