• Binance is reportedly in talks with US regulators and expects to pay a fine for regulatory breaches.
• The firm’s Chief Strategy Officer, Patrick Hillmann, has attributed these gaps in compliance to the company’s rapid growth and lack of knowledge on relevant laws.
• The enforcement action taken by US authorities is likely to have a „long-lasting chilling effect“ on the crypto industry in the country.
Binance Facing Penalties for Regulatory Probes
Major crypto exchange Binance is expected to pay monetary penalties to settle current investigations by the US authorities, according to Wall Street Journal. The exchange will likely do this in order to end the regulatory and law-enforcement investigations into its business.
Cause of Gaps in Compliance
Binance’s Chief Strategy Officer Patrick Hillmann attributes these gaps in compliance due to the company’s rapid growth and lack of knowledge on relevant laws. He states that their initially small staff was spread too thin as they were working on international expansion, compliance, and cybersecurity at once.
US Authorities Move Ahead with Enforcement Action
Hillman claims that the enforcement action taken by US authorities will have a „long-lasting chilling effect“ on the crypto industry in the country. This month alone, Paxos announced that they are expecting enforcement action from SEC as well as other related events taking place.
Fine Amount Unknown
As for how much they’d have to pay or when they will be asked to do so remains unknown at this time as it is up for regulators to decide. However, Hillman claims that Binance is feeling confident about where these discussions are going and believes it will be a good moment for them once it has been put behind them.
Conclusion: Unclear Regulatory Landscape
The regulatory landscape within the US remains unclear making it difficult for crypto businesses to maneuver around correctly without falling foul of any laws or regulations set out by authorities there.