Binance Enhances Customer Screening in the United States

According to Bloomberg, Binance has urged leading brokers to enhance customer screening to ensure they do not serve customers in the United States.

Azcnews (2)

Global cryptocurrency exchange Binance has asked leading brokers such as FalconX and Hidden Road to improve their customer vetting processes to prevent Americans from trading on the platform.

According to the report, since brokers primarily serve institutional investors, information needed from customers includes the geographical location of their offices, founders, and employees. They also require customers to provide authentic information to ensure accuracy.

Binance’s situation after CZ pleaded guilty

The report said that since Binance was accused in November, the cryptocurrency exchange has asked top brokers to increase information about their customers.

Binance after pleading guilty and admitting to violating the Bank Secrecy Act last year. The United States Department of Justice announced a settlement with Binance over charges related to money laundering, fraud, and sanctions violations, resulting in the exchange paying a $4.3 billion fine.

Changpeng Zhao
Changpeng Zhao

Changpeng Zhao turned Binance, the company he founded and runs as CEO, into the world’s largest cryptocurrency exchange by targeting the US market, but declined comply with the laws of the United States,” Acting Assistant Attorney General Nicole M. Argentieri of the DOJ’s criminal division said in a statement last November.

Binance’s US branch faced a lawsuit from the Securities and Exchange Commission last June, along with Binance and Zhao, claiming it had to cut its staff by more than two-thirds after revenue fell 75% following enforcement measures.

Related: Former Binance CEO CZ Announces Upcoming Plans

However, the global exchange appears to have grown stronger since Zhao’s guilty plea and subsequent resignation, as the total value of assets under management has increased from $67 billion to $112.5 billion. USD since November, according to data from DefiLlama. This may be because the value of bitcoin has seen record increases over the past few months.

Binance remains the world’s largest cryptocurrency exchange in terms of trading volume, according to data from CoinMarketCap.


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