- Binance has tightened verification to prevent US investor access, enhancing compliance after a $4.3 billion penalty for regulatory violations.
- The exchange raised its criteria for new token listings and reiterated its commitment to transparency and compliance standards.
The leading cryptocurrency exchange in the world, Binance, has sent a directive to premier brokerage services, including Hidden Road and FalconX, requesting that stronger verification procedures be put in place, as echoed by popular journalist, Wu Blockchain.
Due to increasing regulatory monitoring after a major plea agreement with US regulators last year, this step limits access for investors with US headquarters.
Bloomberg: Binance has asked prime brokers to conduct stricter inspections to prevent American investors. Binance asked FalconX and Hidden Road, among others, to provide more customer information, including office addresses and the locations of employees and founders.…
— Wu Blockchain (@WuBlockchain) March 19, 2024
Binance Enhancing Verification for Security
The exchange is strengthening security after Binance admitted responsibility in November for breaking US anti-money laundering and sanctions laws, which led to a hefty $4.3 billion fine. The Department of Justice has already criticized Binance for breaking US laws by highlighting its dealings with US clients, particularly high-value traders.
Binance has made it mandatory for prime brokers to carry out comprehensive client verifications, including requesting information about the whereabouts of employees and founders as well as office locations, in an effort to increase compliance.
Additionally, attestations attesting to the accuracy of the client’s information must be signed. For a deeper dive into these developments, you can check out this YouTube video.
Scrutiny of Token Listings
Due to changing regulatory situations, compliance is being closely maintained, especially when adding new tokens to the platform. Binance increased its listing procedures to display only coins that meet strict compliance standards.
Previously, Binance initiated an investigation into alleged insider trading involving Solana’s Book of Meme (BOME), promising rewards up to $5 million for crucial information, as previously reported by ETHNews.
Binance’s Transparency Efforts
In response to inquiries about the revised verification procedures, Binance reaffirmed its dedication to upholding openness and compliance. In order to facilitate trading and connectivity for businesses, including brokers and algorithmic trading firms, the exchange launched the Binance Link Program.
Meanwhile, the price of Binance coin (BNB), has been weakening in the last 24 hours, falling by 9.39% to $511.75. This reflects a selling attempt to dominate in the short term.