Binance Tasks Prime Brokers with Identifying U.S. Nationals: Strengthening Compliance After Plea Deal

In a move to bolster regulatory compliance following last year's plea deal, Binance is intensifying its efforts to restrict access for U.S. nationals to its crypto exchange. According to recent reports, Binance is asking its prime brokers to do enhanced Know Your Customer (KYC) work on clients to ensure that they aren’t serving U.S. nationals.

Sources familiar with the matter reveal the extent of Binance's directive. Sources familiar with the matter have disclosed that Binance has instructed prime brokers, including FalconX and Hidden Road, to significantly enhance their due diligence processes. This includes more stringent checks to identify and prevent U.S. investors from utilizing the platform. BINANCE has asked prime brokers to run more stringent checks to keep United States investors off the crypto exchange in the fallout from last year’s plea deal with the Justice Department.

The focus on prime brokers underscores the exchange's strategy. By tasking these firms with thorough client screening, Binance aims to fortify its compliance framework and prevent any potential violation of U.S. regulations. According to recent reports, Binance has called upon prime brokers, such as FalconX and Hidden Road, to fortify their client screening procedures. The aim is clear: to prevent United States citizens from accessing the exchange. This proactive measure signals Binance's commitment to adhering to the terms of its plea agreement and operating within the bounds of the law. Binance has asked prime brokers to run more stringent checks to keep US investors off the crypto exchange in the fallout from last year’s plea deal with the nation’s legal system.