The agreements that three bitcoin exchanges negotiated with regulators offer valuable insights for the cryptocurrency industry.
The Wall Street Journal (WSJ) announced on Wednesday that the chief compliance officers of Binance, Coinbase, and Kraken made these remarks while speaking on Wednesday, April 10, at Chainalysis' Links conference in New York.
According to the research, all three companies have settled with U.S. regulators in the last two years, are still investing in hiring and compliance procedures, and hope that other businesses in the field can take note of their experiences.
According to the article, Binance's chief compliance officer, Noah Perlman, stated that the conditions associated with its settlement serve as a roadmap for the business as it enhances its compliance program and can act as an example for other companies in the sector.
According to the article, Binance settled allegations made by many agencies that it had broken anti-money laundering (AML) regulations and sanctions in November.
Valerie-Leila Jaber, global head of financial crime compliance at Coinbase, stated that the company's technology teams have collaborated with Coinbase's compliance team to improve the company's capacity to react promptly to alerts pertaining to compliance during a period of growing transaction volume.
According to the article, Coinbase settled with the New York State Department of Financial Services in January for breaking AML regulations.
According to the report, CJ Rinaldi, chief compliance officer at Kraken, stated that the company has discovered that it is preferable to recognize issues and alert authorities right away in order to prevent surprises.
According to the study, Kraken resolved claims that it had broken American sanctions on Iran in 2022.
The Wall Street Journal article was published one day after Richard Teng, the new CEO of Binance, stated to CNBC that the cryptocurrency exchange had evolved past its previous philosophy that it is "better to ask for forgiveness than permission."
"We are looking at sustainability as the company moves into greater maturity," Teng stated. "We're developing a very robust compliance program because the current trend is very clearly toward much more compliance."
According to Caitlin Barnett, the director of regulation and compliance at blockchain data firm Chainalysis, in an interview published in November 2022, the ease with which transaction monitoring can be carried out has enabled cryptocurrency to shed a significant portion of its initial stigma as nothing more than a medium of exchange for darknet markets and illegal actors.