March 30, 2023

to newly uncovered texts and documents, Binance had allegedly devised a strategy to set up a separate entity in the US that would operate independently from the main exchange, allowing it to evade US regulatory scrutiny.

The documents suggest that Binance had planned to establish a US-based entity that would be registered with the Financial Crimes Enforcement Network (FinCEN), but would not be subject to the same level of regulatory oversight as the main exchange. This would have allowed Binance to continue operating in the US without complying with US laws and regulations.

The revelations have raised concerns among US regulators, who have been cracking down on cryptocurrency exchanges that operate outside of the law. The US Securities and Exchange Commission (SEC) has recently taken action against several cryptocurrency exchanges, including Binance, for allegedly violating US securities laws.

Binance has denied any wrongdoing and has stated that it is committed to complying with all applicable laws and regulations. However, the newly uncovered documents suggest that Binance may have been aware of the potential legal risks associated with its plan to evade US regulatory oversight.

The implications of these revelations could be significant for Binance, which has been facing increased regulatory scrutiny in recent months. The exchange has been banned in several countries, including China and Japan, and has been the subject of investigations by regulators in the US and other countries.

The cryptocurrency industry as a whole has also been facing increased regulatory scrutiny, as governments around the world seek to regulate the rapidly growing sector. While some regulators have taken a more hands-off approach, others have been cracking down on cryptocurrency exchanges and other businesses that operate outside of the law.

As the cryptocurrency industry continues to evolve, it is likely that regulatory scrutiny will only increase. Binance and other cryptocurrency exchanges will need to ensure that they are fully compliant with all applicable laws and regulations, or risk facing serious consequences.

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