US senators have asked Binance, one of the world’s largest cryptocurrency exchanges, to provide information on its business operations amid accusations of illegal practices.
The lawmakers requested a slew of documents on company finances, compliance, and risk management practices from Binance and its US affiliate, Binance.US, CNBC reported.
“In the years since Binance’s founding, the company has faced increasingly disturbing allegations regarding the legality of its operations,” the senators wrote to CEOs of Binance and Binance.US.
The US Justice Department began investigating Binance in 2018 amid concerns that the exchange violated US anti-money laundering and sanctions laws. However, the agency is undecided whether to press charges against the company or individual executives.
A Binance spokesperson told CNBC that the company is looking forward to “correcting the record” regarding its operations. The exchange maintains transparency of its business operations and cooperates with regulators in jurisdictions where it operates, he added.
“Binance.com does not operate in the US, nor do we have US-based customers, however, we appreciate the senators’ request and will provide information to help them better understand why we remain the most trusted platform with users across the globe,” the spokesperson explained.
Three Japanese Banks To Experiment With Stablecoins
Three Japanese banks will experiment with stablecoin payments as they work to develop a system that meets all legal requirements, Binance news reported. The banks will use a system developed by GU Technologies, a Web3 infrastructure company, on the Japan Open Chain, a public blockchain compatible with Ethereum that complies with Japanese law.
“We will conduct an experiment to confirm that each bank can issue its own stablecoin that can be used in Ethereum wallets, such as MetaMask while complying with the Payment Services Act,” the companies said.
Japan is moving toward adopting stablecoins. The collapse of the multibillion-dollar algorithmic stablecoin issuer Terra in 2022 led to the passage of several stablecoin-specific rules aimed at protecting investors.
Additionally, the government plans to allow stablecoins issued outside the country to be listed on local exchanges. The Japanese exchanges will be able to apply for a special license to trade stablecoins under new rules to be implemented in June.
Coinbase, Bitstamp, Other Crypto Companies Ditch Silvergate
The world's largest cryptocurrency exchange, Coinbase, has announced it is switching its service for prime account holders to Signature Bank from Silvergate.
In a recent report from U.today, Coinbase stated that it is no longer accepting or initiating payments from or to Silvergate Capital. Following the collapse of Sam Bankman-Fried’s FTX, cryptocurrency-friendly bank Silvergate Capital was severely hit. Silvergate’s shares plunged over 50 per cent after it announced it would not be able to submit its annual report by March 16.
Coinbase assures its clients that their funds are safe and readily available. Moreover, the exchange said it would facilitate institutional client cash transactions with other banking partners and that it has taken proactive steps to ensure that clients will not be impacted. The exchange Bitstamp, the crypto bank Galaxy Digital, and the stablecoin issuer Paxos have also jumped ship.
