Binance’s Response to Regulatory Pressures: Instructs Brokers on Rigorous Client Verification

Binance has been in the news recently owing to its regulatory and compliance issues, and it has been pleading guilty. According to the reports, Binance has recently instructed prime brokers like FalconX and Hidden Road, which serve institutional traders, to get detailed information on its clients to amplify its compliance and regulatory measures.

Binance has reportedly instructed prime brokers to implement stringent verification procedures to prevent having US investors in the cryptocurrency exchange. The checks include office location inquiries, locations of employees and founders, and the information attested by respondents to verify the accuracy levels. 

Binance’s past violations

Binance, under its former CEO, had violated the Bank Secrecy Act last year. The U.S. Department of Justice had charged Binance of US anti-money laundering, fraud, and sanctions laws violations with a $4.3 billion penalty. The Department of Justice had Binance accused of targeting US customers and significant traders and failing to comply with relevant legislation.

The crypto sector is watchful of compliance with the trading platform Binance. As reported by Bloomberg, insiders have indicated that Binance has enhanced its criteria for listing new digital tokens. In response to inquiries on tightened checks by the prime brokers,

Binance replied, “Binance is fully committed to compliance and has made public how it assesses end users who can access the Binance platform. By making its standard transparent, Binance gives clarity to enterprises who want to access its market-leading liquidity.”

Binance still held high

Nevertheless, there has been a tremendous surge in Bitcoin’s price over the past year, which has instilled hope and enthusiasm in the digital asset industry. The BNB Coin also performs positively, suggesting traders’ optimism and trust in the platform. Notably, BNB has surged by about 80% this year, surpassing Bitcoin’s growth rate. Its TVL has increased from $67 billion to $112.5 billion since November, according to data from DefiLlama.


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