When operating a cryptocurrency exchange like <a href="https://en.coin-turk.com/binances-challenging-year-amidst-regulatory-issues-and-intensified-competition/" data-wpel-link="internal">Binance</a>, the clientele can be diverse, and some groups must be kept at bay. This includes those sanctioned by OFAC decisions, names on other governments’ banned lists, and financiers of terrorism. Failing to take necessary precautions could lead to lawsuits. A large exchange like Binance has a particularly challenging task in this respect.&nbsp; 
<h2 style="text-align: justify" id="span-data-contrast-auto-binance-s-challenge-and-fight-span-span-data-ccp-props-201341983-0-335551550-0-335551620-0-335559739-160-335559740-259-span">Binance’s Challenge and Fight&nbsp;</h2> 
Chagri Poyraz, Binance’s Global Sanctions Head, penned an article today explaining Binance’s actions in this domain. Poyraz boasts nearly two decades of experience in risk management and creating industry-leading compliance programs.&nbsp; 
<img decoding="async" loading="lazy" class="aligncenter wp-image-85854 size-full" src="https://en.coin-turk.com/wp-content/uploads/2023/06/poyraz.png" alt="" width="1382" height="780" srcset="https://en.coin-turk.com/wp-content/uploads/2023/06/poyraz.png 1382w, https://en.coin-turk.com/wp-content/uploads/2023/06/poyraz-300x170.png 300w, https://en.coin-turk.com/wp-content/uploads/2023/06/poyraz-768x433.png 768w, https://en.coin-turk.com/wp-content/uploads/2023/06/poyraz-1200x677.png 1200w, https://en.coin-turk.com/wp-content/uploads/2023/06/poyraz-108x62.png 108w, https://en.coin-turk.com/wp-content/uploads/2023/06/poyraz-264x150.png 264w, https://en.coin-turk.com/wp-content/uploads/2023/06/poyraz-255x144.png 255w" sizes="(max-width: 1382px) 100vw, 1382px"> 
Half of the crypto market volume comes from the Binance exchange. As a result, Binance must be more careful than other exchanges and maintain a larger audit and risk team than its industry peers. While the detection and blocking of criminal revenues and individual movements are not rewarded, small overlooked transfers can cause problems.&nbsp; 
In his article today, Poyraz stated,&nbsp; 
<blockquote> 
 Since undergoing a company transformation about two years ago, compliance culture is instilled in each employee daily. Beyond creating a culture of compliance, we have invested tens of millions of dollars in our compliance program and increased our in-house compliance support staff to a world-class 750 experts. We are confident that our current program parallels many programs found in traditional financial institutions that have been in operation for over a century. 
</blockquote> 
In recent years, Binance has prioritized regulatory compliance, partially in response to increased scrutiny from government agencies.&nbsp; 
<h2 style="text-align: justify" id="span-data-contrast-auto-what-is-binance-doing-span-span-data-ccp-props-201341983-0-335551550-0-335551620-0-335559739-160-335559740-259-span">What is Binance Doing?&nbsp;</h2> 
One of the key components of the program is to prevent residents of sanctioned jurisdictions from using the platform. This is the task of the Compliance with Sanctions unit, which is growing by the day. There are people who are not allowed access to the Binance exchange because of where they reside. If you can’t block these, like in the recent CFTC case, you may have to go to court. Binance doesn’t want to experience such setbacks anymore.&nbsp; 
The issue in the case brought by the CFTC this year was U.S. citizens using the Binance exchange for futures trading without permission. The regulatory body also alleged that Binance had turned a blind eye to it.&nbsp; 
Chagri Poyraz, Global Sanctions Head at Binance, shared insights today on how the world’s largest crypto exchange maintains regulatory compliance. According to Poyraz, approximately half of the global cryptocurrency market volume flows through Binance, hence necessitating rigorous measures to prevent restricted individuals from using the platform.&nbsp; 
In his statement, Poyraz mentioned, “In the ongoing struggle against illicit actors, our Sanctions Compliance team deploys various layers of control. While some individuals try to bypass these restrictions with innovative technologies and strategies, we persist in our fight.”&nbsp; 
<h2 id="span-data-contrast-auto-what-is-binance-doing-span-span-data-ccp-props-201341983-0-335551550-0-335551620-0-335559739-160-335559740-259-span">What is Binance Doing?&nbsp;</h2> 
One of Binance’s key compliance measures is IP address checks to prevent users from restricted jurisdictions from accessing its platform. Binance also uses VPN detection alongside several other tools and indirect indicators to ensure users aren’t falsely declaring their residency to misuse the platform. Upon detection of any violation, the system triggers a request for user information regarding their location and intent.&nbsp; 
The exchange also takes precautionary measures for temporary visits, restricting transactional permissions for users temporarily in a sanctioned jurisdiction. “If our system indicates that the purpose of a user’s temporary stay in a restricted market is deceptive or contrary to the truth, in other words, if the user is violating our Terms of Use, we will terminate the user’s account,” Poyraz stated.&nbsp; 
Poyraz concluded, “This is an ongoing battle, and people are continually finding ways to circumvent the most sophisticated restrictions and controls, including using fake identities and hiding their locations. We’re committed to identifying and immediately removing such individuals from our system. Our Sanctions Compliance team has unparalleled expertise, advanced technology, and sophisticated control processes to ensure Binance’s full compliance, and we are determined to keep investing in these controls to stay one step ahead in the game.”&nbsp; 
The post <a rel="nofollow" href="https://en.coin-turk.com/binances-enhanced-compliance-efforts-navigating-crypto-regulation/" data-wpel-link="internal">Binance’s Enhanced Compliance Efforts: Navigating Crypto Regulation</a> appeared first on <a rel="nofollow" href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Binance’s Enhanced Compliance Efforts: Navigating Crypto Regulation

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