Google uses CoinMarketCap data even when regulators check Binance
Changpeng Zhao, CEO of the world’s largest cryptocurrency exchange by trading volume and number of customers, Binance, said in a January 7 tweet that Google uses CoinMarketCap (CMC) data streams.
In recent months, Google, a technology company and internet search engine provider with diverse interests including marketing, cloud computing, and more, hasn’t been shy about getting into crypto and blockchain.
In December, Alphabet, the parent company of Google LLC, hired Rishi Ramchandani, a former BlockFi executive. Rishi will work as an APAC Web3 Administrator at Google.
It should be made clear which of Google’s broad divisions uses CMC data. However, given the primary functionality of the tracker, Google may have integrated the crypto data feed into Google Finance.
The integration of CMC, a coin tracker that transmits data of more than 22,000 tokens and more than 530 cryptocurrency exchanges, is an endorsement of cryptocurrencies, especially Binance.
In 2019, Binance acquired the cryptocurrency tracker for a record $400 million. Since then, CMC has continued to play a crucial role in not only spreading reliable crypto information about projects but also in establishing the credibility of cryptocurrency exchanges and projects.
When CMC was acquired by Binance, there were concerns about cryptocurrency exchanges inflating their trading volumes through laundering. The exchanges that participated in such manipulations had no activity or users that they imagined existed. Their goal, months after the 2018 crypto freeze, was to lie mining crypto projects looking to conduct Initial Exchange Offerings (IEOs) to pay exorbitant fees to use their launch pads.
Claims of trading and manipulating cryptocurrencies, including Bitcoin, were one of the reasons the US Securities and Exchange Commission (SEC) rejected the world’s first bitcoin exchange-traded fund (ETF). Years later, in 2021, the regulator approved an ETF that tracks the price of bitcoin futures contracts taken from approved exchanges.
Despite the positive news, Binance is still in the spotlight of the regulators. There are concerns that the exchange may have bypassed important compliance rules, violating several binding laws in the US, including the Bank Secrecy Act (BSA). BSA requires service providers providing services to US citizens to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.
As reported, US prosecutors have subpoenaed the hedge funds as they continue their investigation into whether Binance is a vehicle for money laundering.