The founder of Binance Holdings Ltd., a cryptocurrency exchange at the center of a global crackdown over regulatory breaches, says the firm’s problems are partly a result of its rapid growth.
“Binance has grown very quickly and we haven’t always got everything exactly right, but we are learning and improving every day,” Chief Executive Officer Changpeng “CZ” Zhao said in a blog post. “We hope to clarify and reiterate our commitment to partner with regulators, and that we are pro-actively hiring more talent, putting in place more systems and processes to protect our users.”
The exchange, the world’s largest by reported turnover, has been battered by a series of moves in recent weeks. A U.K. affiliate has been the subject of a crackdown by the Financial Conduct Authority, a move that led Barclays Plc to stop credit- and debit card payments to Binance.
“The decision has been taken following the FCA warning to consumers, to help keep our customers’ money safe,” a Barclays spokesperson said.
Japan’s Financial Services Authority issued a warning about the bourse. Thailand’s Securities and Exchange Commission filed a criminal complaint against Binance with a division of the Royal Thai Police for operating a digital-asset business in the country without a license. The Cayman Islands’ financial regulator said Binance wasn’t authorized to operate in the territory. Singapore said it would follow up after other regulators’ moves.
Binance also had to “temporarily suspend” euro bank deposits from one of Europe’s key payments networks, according to Reuters, which cited an email sent to users.
And that’s on top of probes from the U.S., where the Justice Department, Internal Revenue Service and Commodity Futures Trading Commission are investigating the company, although haven’t accused it of wrongdoing.
“We know that we are at the tipping point, along with the broader industry,” Zhao said. He outlined steps the company had taken, which include expanding its international compliance team and advisory board by 500% since last year, building out compliance partnerships and localizing operations and business to comply with local regulations.