Binance blocked Wasabi withdrawals to comply with Singapore AML rules

Binance blocked Wasabi withdrawals to comply with Singapore AML rules

Binance blocked Wasabi withdrawals to comply with the local Singapore regulations. The development has come as a shock to many Binance users, and crypto experts who are flabbergasted as to how can the cryptocurrency exchange identify payments towards an individual bitcoin wallet like Wasabi.

The move by Binance Singapore was reported by many users who were perturbed about their blocked payments specifically linked to the Wasabi Bitcoin wallet. Many users said that they received a message that the exchange does not approve the ‘coinjoins’ payments to mixer/darknet websites.

Binance blocked Wasabi withdrawals to comply with regulations

Coinjoins technology is the real culprit here! It allows the exchange to identify the payment routes easily and ultimately identify the wallets. However, some users were even asked for the purpose of their withdrawals. Sadly, a bank never asks its account holders what they do with the money after withdrawal from the ATM. Many users were even asked about their job and salary details.

Wasabi is a privacy-focused wallet that promises anonymity, security and privacy. Not everyone who is using Wasabi is indulging in illegal activities. Most users love it for the privacy it offers. The fallout of this event has resulted in Binance CEO Zhao himself explaining the situation.

Zhao said that Binance blocked Wasabi withdrawals as it is bound to follow the anti-money laundering regulations implemented by the Singapore government. Either Binance can follow local laws and undertake detailed verification or don’t do business in Singapore. The latter option isn’t in anyone’s interest! So, they Binance blocked Wasabi withdrawals. That’s a pretty straightforward reply to a rather complex set of questions.

Singapore strictly observes FATF regulations

Singapore is known to implement the guidelines set forth by the Financial Action Task Force (FATF) quite strictly. It has set ambitious and stringent procedures to control terror financing, money laundering and tax evasion practices.

However, what is frightening in Wasabi’s case is that Binance can track the payments to wallets. Allegedly, Binance employed similar techniques to track its involvement in the notorious PlusToken scam.

Image Source: Pixabay

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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