BINANCE UNDER INVESTIGATION IN INDIA & EMBROILED IN CONTROVERSY IN MALTA

Binance Holdings is being investigated by authorities in India over potential money laundering offences. 

According to BNN Bloomberg, the country’s anti-money laundering agency is investigating whether Binance Holdings was involved with betting apps run by Chinese operators. 

Specifically, it has been alleged that the illegal Chinese operators have been laundering money through the WazirX cryptocurrency exchange, which Binance acquired in 2019. It is believed the Chinese apps have collected over 10 billion rupees (approx. US$143M) over the past ten months. 

Indian authorities had reportedly already issued a show cause notice to WazirX over a possible breach of foreign exchange management regulations, in transactions worth 29.9 billion rupees. An investigation apparently also found that Binance had not been collecting the necessary KYC documents during most of the transactions. 

The Indian Enforcement Directorate has now summoned Binance executives for questioning. 

Meanwhile, in Malta…

Meanwhile, in Europe, Maltese authorities have been left red faced after accusing Binance’s Blockchain Charity Foundation of failing to submit accounts, and then “finding” them (presumably down the back of a sofa). 

The debacle started when a local charity accused Binance of failing to honour its donation pledges. According to a 26 July Times of Malta report, The Malta Community Chest Fund was taking legal action in an attempt to enforce cryptocurrency donation pledges made by the Blockchain Charity Foundation. Apparently, the pledged donations had grown in value from a “couple of hundred thousand euros to €7 million”, and were earmarked to help cancer patients. 

However, with the collapse of Malta’s blockchain dreams, Binance never gained a cryptocurrency exchange license in the country, and along with other companies, fled the island. It is now attempting to liquidate its charity foundation in the country – without, allegedly, honouring its pledges. 

During the drama, it also emerged that the commissioner for voluntary organisations was threatening legal action against Binance, over its failure to file accounts with the watchdog. Indeed, a letter, sent on 23 July, accused the foundation of ignoring multiple reminders to file accounts for 2018, 2019, and 2020. 

However, on 27 July, the Times of Malta reported that the office of the commissioner had “found” accounts filed by Binance’s Blockchain Charity Foundation, and that legal action was no longer being pursued. 

And, if the entire saga didn’t seem farcical enough, it has also emerged that one of the members of the Blockchain Charity Foundation’s senior advisory board is none other than the former President of Malta, Coleiro Preca.