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"Binance, commingled customer funds with company revenue in 2020 and 2021, in breach of U.S. financial rules" Guess it is fortunate for them they are not a US
by smoovb 3y ago
"Binance, commingled customer funds with company revenue in 2020 and 2021, in breach of U.S. financial rules"
Guess it is fortunate for them they are not a US company governed by U.S. financial rules.
- mikeyouse 3y agoAlas, if you serve US customers (which they do) you need to abide by US financial rules.
- smcl 3y agoThis would also be an issue in the UK too - mixing client money with company money is a big no-no. I imagine plenty of other countries have similar regulations.
- smoovb 3y agoBinance US, separate entity, serves US customers. Binance from the article does not.
- pcthrowaway 3y agoWeren't those separate entities found to have comingled funds though?
- diab0lic 3y agoBinance from the article most certainly does: https://amp.cnn.com/cnn/2023/03/27/business/binance-cftc-lawsuit/index.html https://amp.cnn.com/cnn/2023/03/27/business/binance-cftc-law...
- deleted 3y ago[deleted]
- raverbashing 3y agoExcept this is more akin to "don't serve food that was left under room temperature for a day" than an arbitrary procedural US-rule.
- dragonwriter 3y agoIn the same way that European data protection regulations apply to firms with European person’s data, even if they aren’t European firms, US money protection regulations apply to firms with U. S. people’s money, whether or not they are US firms. And, also from the article: “Binance allowed U.S. customers to trade on its platform from 2019 to this year despite publicly claiming to restrict access to Americans, the U.S. Commodity Futures Trading Commission alleged in a complaint against the exchange in March.”
- deleted 3y ago[deleted]
- NelsonMinar 3y ago"commingling happened almost daily in accounts the exchange held at U.S. lender Silvergate Bank" The very next sentence in the article. If you're going to quote, quote with context. "Binance allowed U.S. customers to trade on its platform from 2019 to this year"
- NovemberWhiskey 3y agoWell, OK, sure but the same basic rules are present in (for example) the UK, Hong Kong, Singapore ... the Bahamas ... I mean, I am sure you can find some craptastically-regulated country somewhere which doesn't have client money rules but still.
- rsynnott 3y agoI mean, commingling is verboten pretty much everywhere.