By Hassan Mehmood (Saudi Arabia)
It is no secret that Binance has become the number one target of the financial regulatory authorities in many countries. Most of the regulatory pressure that is imposed on Binance is coming from western countries. However, there are some exceptions, such as Thailand. According to media reports, Binance has also put the matter of becoming more regulatory friendly a top priority.
Binance is Facing Severe Regulatory Pressure
Since last year, Binance has increased the internal compliance employees and legal advisory board by 500%. Recently, Netherlands central bank became the latest federal authority to issue a public warning against Binance. Binance CEO, Changpeng Zhao, has hired a former regulatory employee to help the crypto exchange platform deal with the increasing pressure from state regulators.
Greg Manohan is a former criminal investigator who worked at Inland Revenue Services (IRS) for many years. Manohan has accepted a position as the Global Money Laundering Reporting Officer or GMLRO. He spent 30 years working with several state-level regulators. He was working with the special criminal investigation department with IRS. His resume unveils that he was involved in many top-level criminal investigations carried out by the IRS during his tenure.
The former GMLRO Karen Leong is reportedly resigning from his position at Binance. She was working in the capacity since 2018, and from now on, she will serve Binance under the capacity of Director for Compliance. Manohan recently told the media about his new position that he aims to focus on the largest criminal investigation cases that Binance is dealing with. He further added that he also plans to increase the compliance of Binance by implementing improvised security protocols.
The Financial Action Task Force (FATF) is a multi-state financial watchdog that is transitional. According to market speculations, FATF is planning to charter new guidelines for crypto trading that are applied within all the countries that come under its jurisdiction. According to FATF leadership, this step is crucial to create a fence against criminal activities like money laundering and finance-related terrorism. In anticipation of such regulations, crypto exchange platforms like Binance are planning to develop a better AML and compliance charter. Binance also hired former FATF executives Josee Nadeau and Rick McDonell to deal with these regulatory problems about European countries. Binance has also decided to decrease the rates of their leverage, directing users to comply with KYC requirements by reducing the maximum withdrawal limits and halting tokenized stock products from the market altogether.
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