U.S. Sens. Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Roger Marshall (R-KS) recently forwarded correspondence to crypto exchange, Binance, and its domestic affiliate, Binance.US seeking insight regarding the company’s business practice transparency efforts.
The letter was sent to Binance CEO Changpeng Zhao and BAM Trading Services CEO Brian Shroder.
“We write to request information regarding growing concerns over the finances, risk management, and regulatory compliance of Binance, Binance.US, and other related entities,” the legislators wrote. “Amid the turbulence unleashed upon the cryptocurrency (crypto) market by the swift collapse of the crypto exchange FTX, Binance now faces investigations into criminal sanctions evasion, money laundering conspiracy, unlicensed money transmission, questions about its financial health, and increased scrutiny over its intentionally opaque corporate structure. Despite calls for greater transparency from customers, financial experts, the U.S. Congress, and authorities around the world, the core of the business remains mostly hidden from public view.”
The lawmakers maintain the FTX collapse underscores the need for transparency and accountability within the crypto industry.
“Retail investors are owed a full, unobstructed view of the relevant operations of the companies they entrust with their assets,” the legislators concluded.
Within the letter, the lawmakers requested Binance and its subsidiaries provide information that includes complete copies of all Binance and Binance subsidiary balance sheets from 2017 to the present; an estimate of the number and percentage of U.S.-based Binance users during every fiscal quarter between 2017 and the present; and complete copies of all internal anti-money laundering (AML) and countering financing of terrorism (CFT) and know-your-customer (KYC) policies and procedures used by Binance, Binance subsidiaries and Binance.US.