Binance Responds to Inquiry Letter from the U.S. Senate

Binance, one of the world’s largest cryptocurrency exchanges, has officially responded to an inquiry letter sent by US Senator Richard Blumenthal, denying recent allegations of sanctions violations.

The company argued that the media reports were based on misunderstandings and that its compliance processes were among the strongest in the industry.

In its response to a Senate hearing on February 24, Binance stated that the allegations, first raised by The Wall Street Journal, were “defamatory.” The company said that the claims of sanctions non-compliance in the news reports were untrue and that its operations were misinterpreted.

Binance stated, “We take these allegations seriously. However, they misrepresent both our daily operations and the significant progress we’ve made in building one of the strongest compliance programs in the industry.”

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The exchange claimed that strict KYC (Know Your Customer) and sanctions controls are implemented on the platform. According to Binance, users from Iran are banned from accessing the platform, and accounts deemed risky during investigations conducted by security forces are removed from the platform.

The company also stated that accounts are reviewed when credible risk information emerges, closed when necessary, and shared with relevant authorities. Binance argued that its compliance mechanism “worked effectively” in the incidents mentioned in the Senate letter.

Binance stated that its compliance program is constantly being strengthened and that the platform’s security standards are high, adding that more than 300 million users worldwide trust the platform.

Binance also stated that its response to the Senate was prepared based on the information available and that it could provide additional information if necessary.

*This is not investment advice.

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