Binance, the world’s largest virtual currency exchange, admitted to charges of brokering transactions with targets of U.S. government sanctions, including North Korea, and agreed to pay a fine worth $4.3 billion (about 5.5 trillion won). It will also completely withdraw from the U.S. market. It is understood that the United States is issuing a warning to the virtual currency industry as North Korea steals virtual currency to secure funds for the development of nuclear weapons and ballistic missiles to avoid international sanctions.
The U.S. Treasury and Justice Department agreed with the U.S. government on the 21st (local time) that Binance would plead guilty to charges of violating the Bank Secrecy Act (BS) and the International Emergency Economic Powers Act (IEEPA) and pay a fine worth $4.3 billion. He said he did. CEO Changpeng Zhao, who founded Binance, admitted the charges and resigned. Binance also allowed the U.S. government to view its accounting ledgers for the next five years.
Binance, which has millions of American customers, ignored the requirement to register with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and operate an effective anti-money laundering system to identify violations of anti-money laundering and sanctions laws. In particular, it was revealed that a total of 80 virtual currency transactions worth about 4.37 million dollars (about 5.6 billion won) were brokered to North Korea. This provides a way to secure funds for North Korea’s nuclear weapons and ballistic missile development.
In addition, cases of suspected transactions with criminals such as terrorist groups including the Al Qassam Brigades, an armed wing of the Palestinian armed group Hamas, the Palestinian Islamic Jihad (PIJ), and the Islamic State of Iraq and Syria (ISIS), ransomware perpetrators, and money launderers were investigated. Failure to report or prevent it to financial authorities. It also brokered transactions with users not only in North Korea but also in Iran, Syria, and Ukraine’s Crimean Peninsula, which are subject to U.S. sanctions. The Treasury Department said that even though Binance was aware that transactions were taking place between U.S. customers and those subject to sanctions, it did not take sufficient measures to block them, and as a result, a total of 1.66 million virtual currency transactions (worth a total of $700 million) were completed in violation of sanctions. .
Justice Secretary Merrick Garland said, “Part of the reason Binance was able to become the world’s largest cryptocurrency exchange was because of the crimes it committed,” and added, “Now Binance has to pay the largest fine for a company in U.S. history.” “It sends a message to the entire cryptocurrency industry,” Treasury Secretary Janet Yellen said. “If any institution, wherever it is, wants to enjoy the benefits of the U.S. financial system, it must either follow the rules that make us all safe from terrorists, foreign adversaries, and criminals. “You have to face the consequences for breaking the rules,” he said.
Meanwhile, when news of Binance’s large-scale fine was announced, as of 9:20 am on the 22nd, Bitcoin was traded at 48.896 million won on Upbit, a domestic cryptocurrency exchange, down 2.67% (1.341 million won) from 24 hours ago. At the same time, Coin Market Cap, a virtual asset information site, recorded $34,982, down 4.96% from 24 hours ago. “The market is shaking, but it will stabilize soon,” Michael Safai, managing partner at cryptocurrency trading firm Dextery Capital, told CNBC. “It will be difficult to see Binance losing its dominance, but new players will fill the void.” “It might be possible,” he said.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.