Q1: I was astonished that Changpeng Zhao is going to get 3 years jail of sentence if the Prosecutor succeed. But coinbase is still a public company running in safe. Shall Changpeng be charged by investor only? I did not hear sound facts that the investors on binance were cheated and loss their money by non-invest reason? A1: Changpeng Zhao, the founder and CEO of Binance, faces legal challenges due to violations related to anti-money laundering laws and sanctions. He has pleaded guilty to failing to maintain an effective anti-money laundering program under the Bank Secrecy Act (BSA). This plea is part of a larger case where Binance also pleaded guilty, agreeing to pay over $4 billion in penalties to resolve investigations into its operations, particularly its failures in legal compliance while targeting U.S. customers.
Q2: What are the main requirements for an anti-money laundering program for a company like Binance? A2: The main requirements for an AML program include developing internal policies and procedures, designating a compliance officer, ongoing employee training, customer due diligence, suspicious activity reporting, and independent auditing. These measures are critical to ensuring companies do not become conduits for money laundering.
Q3: Does Binance have a certificate of finance company in the US? A3: Binance.US operates under state-level licenses for money transmission services in various U.S. states. These licenses allow it to conduct money transmission activities but are often specific to each state and come with their set of limitations. Binance.US does not operate under a federal financial regulatory certificate from institutions like the SEC or CFTC.
Q4: Can Binance argue that those state licenses for money transmission do not complete their duty to ensure the licensed Binance implementing AML? A4: While Binance could argue that state licenses do not fully encompass the duties associated with implementing comprehensive AML programs, such an argument would likely face significant challenges. State-level money transmitter licenses require compliance with AML standards, and entities holding these licenses are expected to comply with federal regulations, including the BSA, which applies universally across the United States.
Q5: User's personal reflection on Changpeng Zhao's situation. A5: It's understandable to feel sympathy towards Changpeng Zhao, especially considering his background and achievements. The legal challenges highlight the complexities and risks of operating in the cryptocurrency space, which is often ambiguously regulated. Public opinion may be divided based on perspectives on regulation, innovation, and personal accountability.
A personal point: Not sure if I am qualified to pity Changpeng, but sigh. He is my hero. A technical background boy without sound family resources. It is like someone from country trapped by deep state guy by various kind of lega words and names. Good luck to him.
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