Crypto Exchange Binance Hires Ex-U.S. Treasury Criminal Investigator

Binance said it had appointed a former US Treasury criminal investigator as its global money laundering reporting officer, part of an attempt by one of the world's largest crypto exchanges to reinvent itself as a regulated financial firm, Alun John reported for Reuters.

Photo Insert: The BNB or coin cryptocurrency Binance for Cryptocurrency Bus

Governments and financial watchdogs are paying closer attention to the cryptocurrency industry, often putting in place rules that pose a challenge for exchanges like Binance that have thrived in a mostly unregulated environment.

In recent months, Britain, Italy, and Hong Kong have said Binance units are not authorized to carry out regulated activity in their markets, while Malaysia's financial regulator reprimanded the exchange for operating illegally in the country. Bloomberg also reported earlier this year Binance was under investigation by the US Justice Department and Internal Revenue Service.

"My efforts will be focused on expanding Binance’s international anti-money laundering and investigation programs, as well as strengthening the organization’s relations with regulatory and law enforcement bodies worldwide,” Greg Monahan, the new appointee, said in a statement.

Binance chief executive Changpeng Zhao said last month he wanted to improve relations with regulators and said the exchange would seek their approval and establish regional headquarters.

Wednesday's statement said that Binance has grown its international compliance team and advisory board by 500% since 2020. Brian Brooks, chief executive of Binance's US arm, and formerly acting U.S. Comptroller of the Currency resigned earlier this month, just three months after taking up his role.

WEEKLY FEATURE : PAL READY TO SOAR WITH PANDEMIC