The Crypto market is off to a lousy start this new year. As markets continue to plummet, weak crypto regulation by companies like Binance continues to dominate the news.
Binance Intentionally Kept Weak Protocols
According to a report by Reuters, Binance has been deceiving the world about its anti-money laundering protocols. Correspondingly, the company has spent the last few years claiming that it welcomes regulatory oversight.
Furthermore, the report explains how the news came to light. In 2017, Binance left China as the country started taking down the crypto market. In search of a new operational base, Malta was a practical option.
The crypto platform contacted the financial regulator of the Island country. The company said it is looking to get an operating license in Malta.
However, Binance quickly pulled out of discussions with Malta. Familiar sources told Reuters that the crypto platform came to know about the country’s strict anti-money laundering laws and financial disclosures.
Even though the company didn’t apply for the operating license, it went on telling its customers that they were “governed by the laws of Malta.”
Also Read: Binance exchange implicated in multi-million dollar crypto scam, Pakistan set to investigate
Allegations From Both Sides
The news agency has pointed to the hypocrisy of the crypto exchange platform. Reuters says that this is an example of how the platform claims to be all for better regulation in public but wants to hide information from regulators.
At least eight news agencies are going around warning customers to be careful on the crypto exchange platform.
Binance spokesperson defended the crypto exchange platform saying that they are a leading cryptocurrency and blockchain ecosystem.
Furthermore, the spokesperson claims that they are leaders in future technology and legislation.
The company claims that it will “set the crypto industry on the road to becoming a well-regulated, secure industry.”
The news agency Reuters gathered its information by interviewing former employees and business partners of the crypto platform.
Moreover, the news outlet also went through hundreds of correspondence documents between Binance and financial regulators.
Binance CEO Chaopeng Zhao said that former employees are trying to smear the platform. Zhao claims, “Journalists talking to people who were let go from Binance and partners that didn’t work out are trying to smear us.”
Zhao claimed that they welcome regulation and focus on anti-money laundering protocols.
In the past, Binance was into trouble with the law for weak regulation. This news follows the biggest fall in the value of Bitcoin by 50%. Also, Governments across the world are looking to regulate digital assets.