In a statement, Mars said it was "absurd" to compare its corporate governance and financial reporting requirements with Binance's, adding that its goods and services are "highly regulated." "We are a private company and are not required to publicize our corporate finances," he continued, comparing the exchange to privately-held firms such as U.S. "There is absolutely no transparency, no sunlight, no confirmation of any kind about its financial position."īinance Chief Strategy Officer Patrick Hillmann said the Reuters analysis of the units' filings in the 14 jurisdictions was "categorically false." "The amount of corporate and financial information that has to be disclosed to regulators in those markets is immense, often requiring a six-month-long disclosure process," he said. Stark said Binance's operations were more opaque even than those of FTX. Securities and Exchange Commission's Office of Internet Enforcement. "They are co-opting the nomenclature of regulation to create a veneer of legitimacy," said John Reed Stark, a former chief of the U.S. The Reuters analysis also found that several of the units appear to have little activity.įormer regulators and ex-Binance executives say these local businesses serve as window dressing for the main unregulated exchange. The public filings do not show, for example, how much money flows between the units and the main exchange. The filings show that these units appear to have submitted scant information about Binance's business to authorities. Zhao has described the authorisations as milestones in Binance's "journey to being fully licensed and regulated around the world."
In an effort to look inside Binance's books, Reuters reviewed filings by Binance units in 14 jurisdictions where the exchange on its website says it has "regulatory licenses, registrations, authorisations and approvals." These locations include several European Union states, Dubai and Canada. Justice Department for possible money-laundering and sanctions violations, and Reuters reported this month that some prosecutors believe they have gathered sufficient evidence to charge Binance and some top executives. The company is under investigation by the U.S. Zhao denied signing off on the plan and said the unit was set up with advice from top law firms.īinance's huge role in the crypto market – it accounts for over half of all trading volume – has made its operations a keen topic of interest for U.S. regulatory scrutiny by setting up a new American exchange, according to company messages and interviews with former employees, advisers and business associates. Zhao approved a plan by lieutenants to "insulate" Binance's main operation from U.S. Nor has Binance raised outside capital since 2018, industry data show, which means it hasn't had to share financial information with external investors since then.Īnd as Reuters reported in October, Binance has actively avoided oversight.
rival Coinbase, which is listed on the Nasdaq.
#Binance coin price in 2018 full
But it doesn't detail how big those bets are, how exposed Binance is to that risk, or the full extent of its reserves to finance withdrawals.īinance is not required to publish detailed financial statements because it is not a public company, unlike U.S. It lends customers money against their crypto assets and lets them trade on margin, with borrowed funds. The company has its own crypto coin, but doesn't reveal what role it plays on its balance sheet. It doesn't disclose basic financial information such as revenue, profit and cash reserves. Yet a Reuters analysis of Binance's corporate filings shows that the core of the business – the giant exchange that has processed trades worth over $22 trillion this year – remains mostly hidden from public view.īinance declines to say where is based.
The exchange said it dealt with net outflows of around $6 billion over 72 hours last week "without breaking stride" because its finances are solid and "we take our responsibility as a custodian seriously." After the collapse of rival exchange FTX last month, Binance's founder Changpeng Zhao promised his company would "lead by example" in embracing transparency. LONDON, Dec 19 (Reuters) - The world's biggest crypto exchange, Binance, is battling to shore up confidence after a surge in customer withdrawals and a steep drop in the value of its digital token.
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