Crypto Exchange Binance has hired a former U.S. Internal Revenue Service agent to head up its new intelligence department, which is strong evidence that the company wants to increase its resources to meet regulatory requirements.
Tigran Ghambaryan has joined Binance as VP of Global Intelligence and Investigation, the company said Thursday. Binance is Gambaryan’s first private sector employer since joining the IRS as a private agent in September 2011.
While working for the IRS, Ghambaryan investigated cases related to national security, terrorist financing, tax evasion and identity theft. He was also involved in the investigation of Silk Road, a dark online marketplace in which some of the first cryptocurrency transactions took place. Silk Road was closed by the FBI in October 2013, and founder Ross Ulbricht was arrested and eventually sentenced to double life in prison and 40 years with no parole.
Binance instructed Gambaryan to conduct internal and external investigations to “prevent threats and financial losses.” The audit and investigation team will work closely with law enforcement and regulatory agencies.
Binance appears to be stepping up its compliance measures in response to legal turmoil around the world. The exchange was forced to cease operations and trading services in several markets, including Japan, the United Kingdom, Germany and the Canadian province of Ontario, allegedly for complying with local licensing laws.
On the subject: Binance Opposes South African Regulatory Warning
Binance recently moved to ban paper deposits and instant cryptocurrency trading in Singapore under regulatory pressure. The exchange also stopped cryptocurrency futures and options in Australia.