- Binance is bracing itself for potential fines imposed by regulators in the United States.
- The fines would settle existing investigations against the crypto exchange due to misconduct in the past.
- The company’s Chief Strategy Officer believes the settlement could involve more than just a monetary penalty.
Binance, the world’s largest crypto exchange, is expecting to shell out a considerable sum of money to pay regulatory agencies in the United States. The exchange’s Chief Strategy Officer recently revealed that the company is anticipating regulators to impose fines for its past conduct.
According to a recent report, the monetary penalty would go towards settling the existing investigations initiated by U.S. regulatory and law enforcement agencies. Binance CSO Patrick Hillmann revealed that the exchange is working with regulators to figure out the next steps toward compliance and remedy.
Hillmann indicated that while the exchange is preparing to pay fines to the agencies, a settlement may involve more than just monetary penalties. The extent of the penalty would be decided by the regulators. While an estimate of the size of the fine or a timeline couldn’t be provided, the Binance executive revealed that the company is “highly confident and feeling really good about where those discussions are going.”
Binance’s exposure to regulatory probes and the subsequent fines stems from its unprecedented growth since 2017. According to Patrick Hillmann, the exchange initially comprised software developers who were unaware of laws associated with money laundering and economic sanctions among other things. This reportedly left a gap in the company’s compliance with American laws. “It will be a good moment for our company because it allows us to put it behind us,” the Binance executive added. As for the current regulatory environment in the U.S., he agreed that it was confusing to understand the regulators’ stance on the crypto market, given the lack of regulatory clarity and proper definition of jurisdiction among the agencies.