Binance, one of the world’s leading cryptocurrency exchanges, has ramped up its internal audit processes, resulting in significant disciplinary actions and the recovery of millions in illicit funds.
According to Binance co-founder He Yi in the ungoing AMA session on X, the exchange has conducted over 120 internal audits over the past two years.Â
These audits have led to the dismissal of more than 60 employees for violations of company policies, marking a major push toward greater accountability within the platform.
Additionally, Binance has successfully recovered over 30 million yuan (approximately $30 million USD) in illegal gains as part of these investigations, underscoring its commitment to compliance and integrity in the highly scrutinized crypto space.
Partnership with U.S. Law Enforcement to Strengthen Oversight
Binance’s efforts to enhance its internal controls are further supported by collaboration with U.S. law enforcement.
He Yi revealed that Binance now works with two internal coordinators from U.S. agencies, providing the exchange with expert oversight to better manage potential legal risks and ensure that its operations meet regulatory standards.
The partnership emphasizes Binance’s focus on fostering a transparent and compliant operational environment, crucial for maintaining trust among its global user base.
The increased cooperation with law enforcement also signals Binance’s efforts to align itself with international regulations and mitigate the growing scrutiny on the cryptocurrency industry.
Rigorous Coin Listing Process Amid Increased Scrutiny
As part of its ongoing efforts to refine its internal processes, Binance has also instituted a more rigorous coin listing procedure.
He Yi shared insights into the exchange’s cautious approach, particularly regarding high-market-value projects and meme coins.
Binance now considers several factors before listing new tokens, such as the project’s market value and the background of the project team.
The recent development comes after internal debates over whether to list the AI16Z coin, a project that had a large market value but raised concerns about whether it could maintain its momentum.
Additionally, Binance has expressed caution when it comes to listing meme coins, which are often issued by smaller, unverified groups, reflecting its cautious stance on potential risks associated with such projects.
Ongoing Legal Actions Highlight Binance’s Commitment to Compliance
While Binance has made significant strides in its internal audits, the exchange continues to face challenges in its efforts to maintain full regulatory compliance.
He Yi mentioned that there are currently two ongoing cases of litigation and pursuit, illustrating the complexities and legal hurdles Binance must navigate in an ever-evolving regulatory landscape.
The exchange’s proactive approach to internal audits and legal cooperation reflects its commitment to not only protecting its users but also adhering to the shifting regulatory requirements across different regions.Â
As the cryptocurrency market faces increasing scrutiny, Binance’s actions may set a precedent for other platforms striving to balance innovation with regulatory responsibility.