The crypto industry can learn lessons from the settlement reached by three crypto exchanges with regulators.
The chief compliance officers of Binance, Coinbase, and Kraken said this while speaking at Chainalysis' Links conference in New York on Wednesday (April 10), The Wall Street Journal (WSJ) reported on Wednesday.
All three companies have reached settlements with U.S. regulators within the past two years and continue to invest in compliance management and staffing, according to the report, and hope that others in the industry can learn from their experiences. He says he wants it.
According to the report, Binance Chief Compliance Officer Noah Perlman said the requirements in the settlement could guide the company in improving its compliance program and serve as an example for others in the industry.
In November, Binance settled claims from multiple government agencies that it violated anti-money laundering (AML) laws and sanctions, according to reports.
According to the report, Valerie Leila Jabbar, Coinbase's global head of financial crime compliance, said Coinbase's compliance team is partnering with the company's technology team to improve compliance-related issues at a time when transaction volumes are increasing. The company said it is strengthening its ability to quickly respond to alerts. .
In January, Coinbase reached a settlement with the New York State Department of Financial Services over AML violations, according to the report.
According to the report, CJ Rinaldi, Kraken's chief compliance officer, said the company has learned that it is best to identify problems and notify regulators directly, thereby avoiding surprises. He said.
According to reports, Kraken settled charges in 2022 for violating U.S. sanctions against Iran.
The WSJ report comes after Binance's new CEO Richard Teng told CNBC that the cryptocurrency exchange is now a more mature company and that it is “better to ask for forgiveness than permission.” The announcement was made the day after he said that he had surpassed his ideals.
“As the company matures further, we are looking at sustainability,” Teng said. “There is a very clear direction now towards further strengthening compliance, which is why we have built a very robust compliance program.”
The ability to easily conduct transaction monitoring has helped cryptocurrencies shed their early reputation as nothing more than a currency for darknet markets and illegal actors, says director of regulation and compliance at blockchain data company Chainaries. said Caitlin Barnett in an interview published on PYMNTS. November 2022.
