- Regulator investigates possible sanctions violation by Russia
- The DOJ will check whether Russians gained illegal access to the exchange
The United States Department of Justice has launched an investigation against the cryptocurrency exchange Binance.
The agency will verify whether Binance Holdings Ltd.. to illegally allow Russians to bypass U.S. sanctions and transact through the platform.
Five people, who asked not to be named, said that the DOJ will also check to see if the exchange tried to circumvent sanctions related to the Russian invasion of Ukraine.
Binance is currently in talks with the Justice Department to resolve previous complaints that the platform was used to evade sanctions by Iran.
A few days ago the exchange blocked thousands of Iranian accounts. Binance said in a statement that the company is in full compliance with all U.S. and international financial sanctions.
“KYC protocols rival any protocols of the traditional banking system, and every customer is required to undergo controls that include country of residence verification and identification,” the company said in a statement.
The exchange itself said it takes its legal obligations seriously and is cooperating with regulators and law enforcement agencies.
In late April, reports surfaced that Binance again supported Russian bank cards. Incrypted team contacted representatives of the company for official comment and they denied this information.
“In accordance with the European Union (EU) sanctions regulations on Russia, Binance entities registered in EU jurisdictions are prohibited from providing services in the EU and the European Economic Area to entities based in Russia, as well as to Russian citizens, except for the category of persons who are citizens or residents of the European Economic Area, or Switzerland”