The worldโs largest digital asset exchange, Binance, is preparing to face fines and penalties in order to settle outstanding regulatory and law-enforcement investigations in the United States.
According to a Feb. 15 WSJ report citing the firmโs chief strategy officer Patrick Hillmann, Binance has been working with regulators to remedy past compliance issues.
Hillmann stated that Binance is โworking with regulators to figure out what are the remediations we have to go through now to make amends for that.โ
He added that the outcome of ongoing investigations will likely be fines but could be more, stating โthat is for regulators to decide.โ
Binance has been subject to several investigations in the U.S. including one which began in 2018 by the Department of Justice over potential violations of anti-money-laundering laws.
In March 2021, the Commodity Futures Trading Commission (CFTC) also probed whether the company offered crypto derivatives to U.S. customers without registering with the agency.
The Securities and Exchange Commission (SEC) also launched a probe into Binanceโs U.S. division in February 2022 regarding trading firms connected to CEO Changpeng Zhao.
Hillmann added that Binance was โhighly confident and feeling really good about where those discussions are going,โ but couldnโt put a figure on the size of the fines or a timescale for resolution with U.S. regulators.
He said the lack of clarity for crypto in America made it a โvery confusing time for us.โ
The SEC has recently ramped up what industry observers call a โwar on cryptoโ โ which appears to target certain staking services and stablecoins which it has deemed as falling under securities laws.
Referring to the recent enforcement activity, the Binance executive said it โwould have a really deep and long-lasting chilling effect in the United States.โ
Related: Bad day for Binance with SEC investigation and Reuters exposรฉ
Earlier this week, New York regulators cracked down on Paxos, preventing it from issuing more of the Binance-branded stablecoin BUSD.
Last week, U.S. crypto exchange Kraken was hit with a $30 million fine and ordered to halt its staking services following SEC enforcement action.
Patrick Hillmann concluded that resolving issues with U.S. regulators would be good for the firm and the future.
โIt will be a good moment for our company because it allows us to put it behind us.โ
Cointelegraph reached out to Binance for further comment did not receive a response by the time of publication.
