Binance Expects Fines To Settle U.S. Regulatory Investigations

Cryptocurrency exchange Binance is expected to face fines from U.S. regulators as part of ongoing investigations, according to the firm's Chief Strategy Officer Patrick Hillmann.

In an interview with The Wall Street Journal, Hillmann stated the company, which began operations in China in 2017, had initially been run by software engineers who were unfamiliar with the legal and regulatory frameworks governing the cryptocurrency industry.

While Binance has since made efforts to improve compliance, Hillmann said regulators are likely to impose fines for past conduct.

Binance is among several large crypto exchanges facing U.S. investigations into their crypto offerings.

The company is not available to U.S. traders, according to Hillmann.

Regulatory scrutiny impacted crypto prices recently, though prices of crypto stocks and currencies rose on Wednesday.

The U.S. Department of Justice has been investigating Binance for potential violations of U.S. anti-money-laundering law, while the Commodity Futures Trading Commission has been looking into whether the exchange offered cryptocurrency derivatives to U.S. clients without properly registering with the agency.

Also Read: ECB Considers Digital Currency To Avoid Dependency On US Big Tech, China's Payment Systems

Hillmann could not estimate the size of fines or when a resolution with U.S. authorities might be reached, but he said Binance is confident in the discussions with regulators.

Hillmann also said the SEC's recent enforcement actions, such as the shutdown of BUSD, a stablecoin issued by Paxos Trust Co. that carries Binance's name, would have a "chilling effect" on the crypto industry in the U.S.

The SEC told Paxos that enforcement action is planned over the issuance of BUSD, which New York State regulators had permitted to be issued and called a virtual currency.

Paxos has said it disagrees with the SEC's analysis and plans to litigate if sued.

Read Next: Beacon Chain's Staking Rewards: 31% In Profit, 69% In Loss, Finds Binance Research

Photo: Shutterstock