Binance, the largest bitcoin (BTC) and cryptocurrency exchange in the world, is the subject of investigations and accusations by authorities in five countries. A trend marked by accusations ranging from money laundering to illegal operations in some territories.  

Nigeria, the United States, France, Brazil and the Philippines are the countries that, until today, opened investigations and took action against Binance. From arrests to executives of that company, to the blocking of the exchange website for citizens.

In many cases, this company is accused of enabling money laundering. Allegations that have been rejected by the company itself, which has defended itself tooth and nail in the cases in which it is pointed out.

What did Binance do to be targeted?

According to the information presented by the authorities of the countries that are currently investigating Binance, this company is accused of having committed highly punishable crimes, such as money laundering, financing of terrorism, fraud and even illegal operations. .

Now, in the United States , different government offices have accused the exchange, since the beginning of last year, of violating the laws. The case has even reached court, where Binance founder Changpeng Zhao pleaded guilty to charges of money laundering, sanctions evasion and fraud filed by the Department of Justice last year. The executive also resigned from his position as CEO of the exchange.

Zhao currently faces 18 months or more in prison  and the exchange could be ordered to pay $3 billion to the United States, bringing that country's total sanction against the company to more than $7 billion. Already, to date, the United States applied to Binance the largest fine ever applied to a bitcoin and other cryptocurrency company.

After the United States, other countries set their sights on Binance. Nigeria, for example, announced the first measures against the exchange in June 2023. But unlike the United States, it blamed that company and other exchanges for manipulating the naira, contributing to the decline of the Nigerian currency in the foreign exchange market.

The curious thing about the Nigerian case is that it directs its gaze towards the cryptocurrency industry in the search for those responsible for the devaluation of the naira. This instead of analyzing the impact that its own monetary policy is producing on the nation's official currency, since it has been in sharp decline, losing more than 96% of its value.

In the midst of this, the Nigerian Securities and Exchange Commission accused the exchange of carrying out operations that are not registered or authorized. In fact, the agency described the exchange's activities as “illegal” and ordered that company to stop encouraging Nigerians to use the platform.

In Brazil, also in the middle of last year, Binance was included among the companies to be investigated for allegedly being involved with pyramid scam schemes. Also, for helping investors avoid suspension orders.

The Philippines recently ordered the blocking of the Binance website in the national territory and accused this company of operating illegally in the country. The Securities and Exchange Commission of the Asian nation asserted that the recurring access and exit of the platform constituted a “threat to the security of the funds of Filipino investors.”

Has evidence been found?

Although Binance has been accused in different countries, it all boils down to investigations that, in many cases, remain ongoing.

And although Zhao admitted his guilt in the United States, it was presumed from the beginning that it was an agreement reached between him and the Justice of that country to pay a large fine and cease investigations.

The rest of the countries that are currently investigating Binance, so far, have not revealed (or have not been made public) evidence that this company served as an operator for money laundering and other crimes, such as terrorist financing.

In fact, the exchange has even been praised for supporting the freezing of accounts on the platform linked to terrorist groups , such as Hamas, which went to war with Israel last year over a deadly attack against civilians.

In any case, the accusations against Binance have shaken the cryptocurrency ecosystem as it is the most important exchange house on the market. There are even those who think that this company can collapse and spread as much damage as that left by FTX, which was once Binance's biggest competitor.

Since the trend of accusations against Binance began, the market has felt the nervousness of an eventual fall of the exchange . So much so that important news about this company has had an effect on the price of cryptocurrencies, especially the project's own, BNB.

Binance remains the industry's heaviest player

Now, despite the fact that Binance faces scrutiny from several countries, this company remains the most important exchange house on the market. This is so since, today, it amasses transaction volumes that exceed USD 30,000 million, according to data from CoinMarketCap.

To put it in context, Binance's trading level is much larger than its next direct competitors, Coinbase or ByBit. And between these exchanges they have a trading volume of no more than USD 13,000 million.

Added to all this is the significant penetration that the exchange has had in countries around the world, especially those in the Global South , which have learned to use the platform to operate with cryptocurrencies. An example is Venezuela, where the rate of Binance users is increasing more and more.

In addition, Binance continues its expansion plan by obtaining licenses and authorizations to operate in certain territories, as indicated in its recurring notes and press releases.

In sum, Binance has emerged as one of the cryptocurrency companies that most seeks to comply with global regulations. That is why Sumsub, the FATF's global provider of end-to-end compliance services, recently sealed an alliance with the intention of combating money laundering and terrorist financing.