Binance repeatedly hid information from regulators, neglected procedures KYC and acted contrary to the recommendations of its own compliance department. This is stated in a large-scale investigation. Reuters.
The interlocutors of the agency said that Binance abandoned the idea of opening a branch in Malta and obtaining a license from the local financial regulator when it learned about the strict protocols. AML and disclosure requirements.
In 2019, the exchange privately notified MFSAthat she abandoned her plan, but continued to claim that her activities were “governed by the laws of Malta”. In 2020, the Authority reported that Binance was not licensed to operate in the jurisdiction. Soon the information was confirmed by the head of the company, Changpeng Zhao.
The agency noted that Binance refused to provide detailed reports on its activities “at least four times” when this information was requested by regulators or partners. In particular, we are talking about the corporate structure and finances of the company.