- Binance has hired a former IRS investigator to head up its money laundering division
- Binance has been criticised for its lack of legal oversight in recent months
- Changpeng Zhao cited a desire to turn the exchange into a fully regulated financial institution last month
Binance has taken another step towards becoming a compliant financial services company by hiring a former U.S. government criminal investigator to lead its global money laundering operation. Greg Monahan, who spent most of his career leading cybercrime investigations at the Internal Revenue Service, will take the helm of an existing team as Binance tries to clean up its image following huge pressure from financial regulators worldwide.
Monahan Well Placed to Improve Binance’s Reputation
Binance announced its plans to become a fully regulated financial institution last month following criticism over the way it operates by financial watchdogs from almost all continents. As a result Binance has gone on a hiring spree to shore up its regulatory activities, although much of the recruitment has been necessitated by a flurry of resignations in recent months.
The hiring of Monahan was announced on Wednesday, with the exchange announcing his role in a press release:
My efforts will be focused on expanding Binance’s international anti-money laundering (AML) and investigation programs, as well as strengthening the organization’s relations with regulatory and law enforcement bodies worldwide.
UK Users Feeling The Pain of Regulatory Pushback
Financial regulators from America, Europe, and Asia in particular have been critical of Binance’s operations and its lack of consumer protection and oversight, while a U.S. probe by the Department of Justice and IRS is allegedly ongoing into potential illicit activities. CEO Changpeng Zhao responded to these criticisms in July, comparing the rise in crypto adoption to seatbelt laws during the birth of the automotive era.
UK users have been hit particularly hard by Binance’s lack of regulations, with GBP withdrawals suspended and most big banks not allowing UK users to send fiat to the platform. They will be hoping that the measures Binance is taking will be enough to allow such processes to resume.