- Binance has hired an anti-fraud firm ahead of their fiat-to-crypto venture launch
- This is in line with previous efforts to avoid trouble with law enforcement agencies
Binance is undergoing a lot of changes in the coming months such as the launch of their decentralized exchange and the possible delisting of certain tokens. This is hardly unusual as Binance is known to be one of the busiest firms in crypto at any given time.
However, like any firm that is involved in crypto, Binance has been under scrutiny about whether they are strictly adhering to the law. This is mostly due to the fact that crypto laws are vaguely defined all over the world and as such, many individuals and firms do not really know where they stand. Now, an April 15, 2019 report states that Binance has been actively taking steps to stay within the law during its operations.
For most of its existence, Binance has stayed in the lane of crypto-to-crypto translations and this was served them well. Now, they are expanding their efforts into fiat-to-crypto transactions, where the waters are a bit murkier due to government legislation, especially as it varies from country to country.
In anticipation of this, they have hired the services of CipherTrace, a firm that specializes in tracing illegal crypto transactions. This, they have stated, is vital to their expansion efforts.
“This is in line with our aggressive expansion plan. We want to keep standards of anti-money laundering and compliance at a high level,” Samuel Lim, chief compliance officer at Binance, who also said that Binance has long been working with compliance firms.
As Binance gears up to launch their fiat-to-crypto service in Singapore, they are taking great care to avoid any issues with regulators.
Not everyone is convinced of their efforts, however, as David Silver, a US attorney, has stated that their new venture could be a risky one.
“The crypto-to-crypto aspect helps hide what they’re doing and makes it harder for regulators to catch them. They’re going to need to legitimize because the world isn’t going to let them move massive amounts of money through countries in which they’re not regulated but have active users. That will eventually come to bite them in the ass,” said Silver.
Another issue on the table is the launch of Binance’s Initial exchange offerings. Initial exchange offerings involve the selection of a number of tokens to conduct sales on the Launchpad platform.