Binance Urges Prime Brokers: Tighten Scrutiny on US Investors

Crypto News- Reports from Bloomberg shed light on Binance’s latest move to fortify its regulatory compliance, specifically targeting US investors. Instructing prime brokers like FalconX and Hidden Road, Binance is pushing for heightened scrutiny through more rigorous client checks.

The decision to tighten controls comes on the heels of Binance’s recent cessation of services in various countries, driven by regulatory constraints and increased oversight.

Binance Urges Prime Brokers: Tighten Scrutiny on US Investors

In the wake of November’s guilty pleas, Binance has been resolute in enhancing its compliance protocols, demanding extensive information from institutional traders. These measures involve detailed inquiries about office locations, staff whereabouts, and founder residency, accompanied by signed attestations for accuracy verification.

The impetus behind these stringent measures traces back to Binance’s plea deal, where it admitted to breaching US anti-money laundering and sanctions laws, incurring a staggering $4.3 billion penalty.

The Department of Justice (DOJ) rebuked Binance for targeting US customers while flouting American regulations, accusing Binance employees of actively soliciting US VIPs to provide misleading location information.

Responding to queries about the intensified checks, Binance reiterated its dedication to compliance and transparency. The company underscored its commitment through initiatives like the Binance Link Program, aiming to furnish enterprises with trading and connectivity services.

Binance’s proactive measures reflect its pledge to uphold regulatory standards while navigating the complex landscape of digital asset trading.