Key Takeaways:
- Binance is addressing exploitation in its Link Program by cracking down on fee arbitrage and related schemes.
- Binance settled with the U.S. Department of Justice for $4.3 billion over financial regulation violations, reinforcing its commitment to compliance.
- Binance.US and international operations face regulatory issues, including license revocations and fines for AML breaches.
Binance is addressing a loophole in its Link Program after some clients exploited its multi-tiered fee structure through arbitrage.
Top-tier brokerage partners benefited from the program’s nine-tier fee structure, obtaining discounts on trading fees and profiting by grouping accounts and trading on their behalf.
Binance is closing a loophole in a program that allowed prime brokerages on the platform to garner additional revenues at the expense of the world’s biggest crypto exchange. https://t.co/2DxCx5sir3
— Bloomberg Crypto (@crypto) June 27, 2024
This allowed platforms to gain from the price differences.
Binance’s crackdown on such schemes is part of broader efforts to prevent misuse of its platform.
In June, Binance urged users to report suspicious activities, including fee arbitrage and KYC breaches, promising rewards for verified reports.
Amid regulatory challenges, Binance reinforced its commitment to compliance.
The company settled with the U.S. Department of Justice for $4.3 billion over alleged violations of financial regulations.
Binance.US, operating separately, faces regulatory issues, including the revocation of its license in North Dakota.
North #Dakota has revoked https://t.co/tzspRdA7k2's money transmitter license, citing violations of state laws including inadequate anti-money laundering measures and a federal conviction against #Binance's founder.
— TOBTC (@_TOBTC) June 19, 2024
This marks the seventh U.S. state to take such action against… pic.twitter.com/X2khlnbtnl
Binance also exited Nigeria over tax evasion accusations and was fined $2.25 million in India for alleged Anti-Money Laundering breaches.
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