The Chief Strategy Officer of Binance expects to pay fines to U.S. authorities to resolve regulatory and law enforcement inquiries into the company’s prior behavior. The executive said that when Binance first started doing business, the company was unaware of the regulations it had to follow in the United States.
According to the Wall Street Journal, Patrick Hillmann, Chief Strategy Officer at Binance, disclosed on Wednesday that the cryptocurrency exchange anticipates paying fines to resolve ongoing regulatory and law enforcement investigations in the United States.
In its early years, he explained, Binance was not familiar with the legal system and rules in the United States that were intended to reduce the risk of bribery and corruption, money laundering, and economic sanctions.
According to the Binance executive, the cryptocurrency exchange is currently collaborating with regulators to determine any potential “remediations” that need to be implemented in order for the business to “make amends” for its prior behavior. He warned that there may be more consequences even though he anticipates a fine.
“We just don’t know. That is for regulators to decide,” he emphasized.
According to reports, several American authorities are investigating Binance. The US Department of Justice (DOJ) is reportedly looking into the cryptocurrency exchange for potential money-laundering offenses. The U.S. Securities and Exchange Commission (SEC) is reportedly looking into the company regarding the BNB cryptocurrency token, and the Commodity Futures Trading Commission (CFTC) is looking into whether Binance offered cryptocurrency derivatives to U.S. clients without registering.
The Chief Strategy Officer of Binance stated that his company is highly confident and feeling really good about where those discussions are going despite the fact that he was unable to predict the amount of the fines or when Binance might come to a resolution with U.S. authorities.
He opined, “It will be a good moment for our company because it allows us to put it behind us.”
It was a very confusing time, according to Hillmann, for Binance to comprehend what U.S. regulators expected of them and how they would be monitoring the cryptocurrency industry. American investors are currently unable to access Binance. However, the crypto exchange has a partner platform that serves U.S. crypto traders called Binance US, a separate entity operated by BAM Trading Services.
A number of cryptocurrency companies have recently been targeted by the SEC, including Terraform Labs for defrauding investors, Paxos for releasing the stablecoin Binance USD (BUSD), and Kraken for its staking program.