Binance.US has responded to a letter issued by a US Senator. March 2 – professing compliance and stating that they will reply to all questions immediately.
Binance Confirms Senator’s Letter
On March 2, varied senators accused Binance.US of partaking in “probably unlawful” actions and requested the corporate to reply a number of questions.
A Binance.US spokesperson mentioned in a press release:
We welcome engagement with policy makers, [senators’] request.
Binance.US additionally defined the 2 insurance policies it upholds. Proof of Reserves ( explained ) The corporate has mentioned it has sufficient crypto to cover all consumer balances) and doesn’t lend or trade its’ clients funds.
Senators demand tons of information
Liable for the unique letter are Senators Elizabeth Warren (Democrat, Massachusetts), Chris Van Hollen (Democrat, Maryland), and Roger Marshall (Republican, Kansas).
Their letter alleges that Binance.US seeks to evade US regulators, facilitates cash laundering and sanctions evasion, and lacks transparency.
The senators particularly requested Binance.US and Binance subsidiaries to offer stability sheets, US consumer knowledge, Know-Your-Buyer (KYC) and AML info.
The letter additionally asks concerning the relationship between Binance.US and Binance and concerning the anti-KYC assertion from Binance CEO Changpeng Zhao. It additionally requested info on Binance’s envisioned “Tai Chi” technique doc. The doc is claimed to advocate creating an entity that reveals a false curiosity in overseas regulation.
The Senator’s letter didn’t particularly deal with the latest controversy surrounding Binance.US’ alleged transfers to Advantage Peak buying and selling agency. Nevertheless, the letter asks Binance.US for an inventory of US-based platforms which have used its service.
Earlier, on February 18th, Senator Roger Marshall mentioned that the US Congress may conduct an investigation into Binance.US about Advantage Peak and different points.