News website Bloomberg has revealed that India's financial regulator has launched an investigation into the world's largest cryptocurrency exchange, Binance. India's financial watchdog is accusing Binance of breaking anti-money laundering rules through gambling apps.
Binance's troubles have no end in sight
Indian financial regulators say these apps have generated a combined $ 135 million in less than 12 months. Most of these profits were laundered through an India-based cryptocurrency exchange, WazirX. Binance has been battling with various financial regulatory agencies around the world as of late.
In addition, authorities are already investigating the exchange of its Indian property, WazirX, for a large number of charges. Bloomberg further revealed that Binance executives would also be subject to questioning from the Indian regulator. But none of the executives has yet responded to the agency's invitation notice.
As widely reported, Binance, which claimed to be a decentralized exchange, has been investigated by various authorities as Italy, the UK and the US have been charged with multiple charges such as terrorism, fraud, money laundering and drug trafficking. .
Private sources reveal to Bloomberg that the gambling app owners are using WazirX to launder the profits on Binance. One possible reason for the Binance disaster is that it does not make its KYC documentation mandatory for current or potential users. Therefore, anyone can use the platform for illicit financial transactions.
Malaysia shut down Binance operations
The Malaysian Securities Commission has taken legal action against Binance Exchange, including its subsidiaries: Binance Digital, Binance UAB, and Binance Asia. Malaysian financial regulators have ordered Binance and its aforementioned subsidiaries to close down by August 8.
The exchange has also been prohibited from promoting any of its products / services through the media. The Malaysian Securities Commission (MSC) accuses Binance of running an illegal exchange company, a serious violation of the country's Capital Markets and Services Act of 2007.
Any cryptocurrency exchange that claims to operate legally is mandated to register as a recognized market operator (RMO) with the security commission. Part of MSC's warning to Malaysians reads like this: "Crypto investors are strongly urged to close and stop any transactions with Binance from now on."
This legal action comes more than a year after the MSC published its 2020 investor alert in which it accused the main exchange of operating illegally in the country. Besides Malaysia, Binance has also been struggling with operational problems in other Asian countries such as Singapore, Hong Kong, and the Philippines.
Binance has taken some steps to address some of these issues. It has introduced a tax reporting tool, stopped stock trading, and limits daily withdrawal amounts for unverified users. Furthermore, European users can no longer trade crypto derivatives, another attempt by Binance to comply with crypto regulations in European member countries. However, the popular exchange is not taking proactive steps to have an operating license in any of these countries where it is allegedly not having one.