DoJ and IRS dig into Binance. Taxes and more

Cryptocurrency exchange giant Binance is being investigated by the US Internal Revenue Service (IRS) and the Department of Justice (DOJ) for money laundering and tax evasion.

BREAKING: Binance, the world's biggest crypto exchange, is under investigation by the Justice Department and IRS https://t.co/mk0Njo7tUE

– Bloomberg Crypto (@crypto) May 13, 2021

According to Bloomberg, the federal investigation is still confidential, with the DOJ and the IRS "seeking information from people with insights into Binance's business." The report accuses Binance of succeeding without government oversight, with its lack of corporate headquarters and the Cayman Islands-based company – which does not charge taxes and offers more lenient business practices. The accusation is equivalent to what more or less all US companies based in Ireland, Luxembourg, the Netherlands, etc, do.

“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative way. We have worked hard to build a robust compliance program that incorporates the anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity, ”a Binance spokesperson said in response to the recent investigation.

Binance and other exchanges continue to face an increase in regulatory controls
One of the biggest criticisms of Bitcoin and virtual currencies as a whole is their use for criminal activities. In January, Treasury Secretary Janet Yellen expressed concern over cryptocurrencies used for terrorist and illegal funding, with other major financial figures like Charlie Munger associating the industry with "kidnappers" and "extortionists."

Chainalysis, a blockchain-based data analytics company used by US federal agencies, reported in 2019 that Binance saw more funds linked to criminal activity than any other transaction-based exchange it had analyzed. 27m5% of tokens from illicit activities would have passed through Binance against 24 of Huobi.

Tecnicamento DoJ and IRS also have the means to follow bank transactions related to these exchanges, so one wonders why they don't do it, or do it superficially. Once the money movements have been identified, it is paradoxically simple to connect them with those of the money currencies. However, Binance's collaboration will facilitate the work of the authorities.

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The DoJ and IRS article dig into Binance. Taxes and more comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/doj-ed-irs-scavano-in-binance-tasse-ed-altro/ on Sun, 16 May 2021 18:04:14 +0000.