The Crypto Roundup: 19 March 2024 | CryptoCompare.com

Leading cryptocurrency exchange Binance is increasing scrutiny of its users in an effort to bar US investors from its platform, after the company pleaded guilty in November to violating U.S. anti-money laundering and sanctions laws and settled with U.S. regulators for $4.3 billion.

The exchange has instructed its prime brokers, including FalconX and Hidden Road, to demand more detailed information from their clients, particularly focusing on residency and location. This includes verification of office addresses and confirmation of where employees and founders are based, and requires signed attestations confirming the accuracy of responses.

Binance’s global platform targeted U.S. customers, including high-value traders who contributed significantly to the exchange’s liquidity, without conforming to the necessary U.S. laws, the Department of Justice said.

The exchange has since also implemented stricter requirements for listing new digital tokens, demonstrating a wider shift towards regulatory adherence.

Binance’s dominance in spot crypto trading has dropped significantly, with the firm seeing its market share dip from nearly 60% to 30% last year, although it has since rebounded to around 40%, according to CCData.

Prime brokers offer hedge funds and other institutional investors a comprehensive suite of services including financing, technology, and research, as in traditional markets. Binance’s prime brokerage partners connect their clients with the deep liquidity available on the exchange.

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• Source: https://www.cryptocompare.com/email-updates/daily/2024/mar/19/