Binance Tightens Checks to Block U.S. Investors Amid Growth Surge

Bloomberg has revealed that Binance is intensifying its client screening efforts to prevent U.S. investors from accessing its services. T

his initiative comes after the company's value nearly doubled following the departure of its former CEO, Changpeng Zhao.

Binance is collaborating with prime brokers like FalconX and Hidden Road, requiring them to obtain extensive information about their clients, including their locations and the backgrounds of their founders and employees, to ensure compliance with U.S. regulations.

Following its admission of guilt for violating the Bank Secrecy Act, Binance is focusing on compliance, having initiated this stricter client information-gathering process around the time it faced charges in the U.S. in November.

The company asserts its dedication to adherence to regulations, aiming to make its operational standards clear for businesses wanting to utilize its platform.

Despite facing a $4.3 billion fine from the U.S. Department of Justice for allegations of money laundering and fraud, and a significant lawsuit from the SEC, which severely impacted its U.S. arm, Binance has continued to grow.

Since Zhao's departure and the guilty plea, the total value locked in Binance surged from $67 billion to $112.5 billion, partly thanks to a spike in Bitcoin's value. Binance remains the world's leading cryptocurrency exchange by trading volume, evidencing its resilience and ongoing dominance in the market.