China has long been an enemy of cryptocurrency trading. It was once known as a crypto mining hotspot, and it had investigated several digital currency firms in the country. Regardless, the new episode has sent shockwaves throughout the cryptocurrency world, as the digital currency giant Binance has been caught concealing their relationship with China for a long time.
According to the documents, the alleged cryptocurrency platform secretly established the office and used Chinese banks to meet their requirements. The investigation also revealed that Binance executives attended tax sessions in a Chinese office in 2019. According to the claims, Binance is currently operating its business secretly in Malta, Uganda, and Singapore, with salaries paid through a Shanghai-based bank.
However, when Binance was asked to elaborate these claims the exchange dismissed all the allegations, claiming that anonymous sources are revealing old information and misleading the people.
The recent disclosure has once again cast doubt on the world's biggest cryptocurrency exchange's reliability and credibility. The concerns were also raised over the data safety of the users as the exchange was rumored to share user data with Chinese authorities. However, evidence was presented regarding the claim yet.
Binance has been Alleged of Breaching American Law
Binance suffered a setback in 2023 when the CFTC accused the exchange of violating American regulations. Between July 2019 and the present, Binance allegedly allowed US citizens to buy and sell commodity derivatives. The CFTC cited Binance's "ineffective" compliance programme and claimed that Samuel Lim, the company's former chief compliance officer, encouraged and supported Binance's violations. Furthermore, it is claimed that Binance advice employees and clients to avoid compliance measures.
This news has alarmed those who have made investments in the cryptocurrency market in general. It underscores the significance of sticking to administrative necessities and guaranteeing that suitable mechanisms are in place. The allegations raised against Binance were expected to act as a reminder to different trades and organizations in the area to focus on compliance to remain vigilant.
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