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Binance Probe in US to Extend into Investigation of Insider Trading

UTC by Sanaa Sharma · 3 min read
Binance Probe in US to Extend into Investigation of Insider Trading
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While Binance has found itself in the center of a storm at present, it is very likely that many other crypto firms will receive some unnecessary attention from regulators and U.S. authorities.

US investigations in one of the world’s largest cryptocurrency exchange firms Binance have lengthened with authorities looking for evidence in cases of insider trading and market manipulation.

In the following inquiry, US officials have been investigating the possibility of Binance employees exploiting the customers. The Commodity Futures Trading Commission investigators will examine the people directly involved in the case.

As one of the leading crypto exchanges of the world, Binance runs a gigantic trading business with customers purchasing and selling crypto assets on its platform worth billions of dollars. Since the crypto market is still deprived of government watchdogs, there is a possibility that the firm exploited its access into thousands of transactions and traded orders without executing them beforehand.

Binance’s speaker confirmed that the company has a “zero-tolerance” policy for malpractices like insider trading and that a stern moral code has been put into action. With suspension being the minimum consequence, the Binance team has intricate and effective rules for the identification and prevention of corrupt means in the company, he added.

Binance has had a long history of compliance problems. Several nations have asked for an end to the company’s offering services, for they are touted as lacking adequate licenses. In a report by Bloomberg, the Justice Department and Internal Revenue Services have initiated a criminal investigation into whether the organization has been a channel for money laundering and tax evasion.

While Binance has found itself in the center of a storm at present, it is very likely that many other crypto firms will receive some unnecessary attention from regulators and US authorities. Agencies like the Treasury Department to the Federal Reserve and the Securities and Exchange Commission are anxious that the crypto world has become a breeding ground for illegal activities with companies steering towards the conventional monetary practices that fail to protect its customers.

In another ongoing investigation against the company, CFTC was on the lookout for Binance’s involvement in allowing US residents to trade derivatives associated with Bitcoin and altcoins. Since Binance is not registered with the authorities, it is expected to disallow American citizens from buying and selling derivatives, since they are controlled by the CFTC.

In a Blogpost by the head Changpeng Zhao, the Canadian who goes by the name CZ, said that the ‘hyper-focus’ on directives and ruling has been intense in the case of Binance. Since 2020, the number of people in Binance’s international compliance committee and advisory board has skyrocketed to 500%, with the organization planning to double the current number by the end of 2021.

Business News, Cryptocurrency news, News
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

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