Binance disagrees – In response to the allegations that were brought forth by the Commodity Futures and Trading Commission (CFTC) and reported in the press the previous day, the CEO of Binance quickly took to the keyboard and authored a blog post that went live a few hours later. Changpeng Zhao (CZ) refutes the allegations made against him and seizes the opportunity to explain his point of view regarding the events in question. Binance is not without flaws, but it has never engaged in unethical business practices, and it always abides by the law. In the long arm wrestle looming against the American regulator, CZ refines his arguments and prepares for war. Here is his response.
About Binance Compliance and Law Enforcement
To begin, he has made it clear that the platform in question had been collaborating with the CFTC for the previous two years, and that as a result, this complaint came as a complete shock to both parties. Then he came to the heart of the matter and attacked the front of the compliance of his services. As a result, it is important to remember the many different control methods and systems that the exchange has implemented to guarantee compliance with the anti-money laundering (AML) rules. In particular, it is important to remember the mandatory Know Your Customer (KYC) requirements that apply to all customers. (IP addresses, blockchain addresses, credit cards, etc.)
Additionally, CZ explains that more than 750 individuals work every day to ensure compliance with the different rules and regulations. In addition, its teams provide the American authorities with consistent assistance by responding to requests for information or the freezing of funds. Thus, in just two years, the platform has seized no less than 285 million dollars at the request of justice. Finally, the CEO reminds us that Binance already possesses 16 registrations or licenses nationwide, making it the world leader in the industry.
CZ’s reaction came just hours after the CFTC allegations
On charges of market manipulation and multiple accounts
Regarding the charges of improper trading from the CFTC, CZ asserts that his company does not trade for profit, and under no circumstances does it manipulate the market. However, because the majority of Binance’s revenue is in the form of cryptocurrencies, the company’s teams routinely convert to it to pay for day-to-day expenses. about some significant actors that also act on the platform by providing liquidity, the CEO promises to monitor their actions as closely as possible to guarantee that their revenues are appropriate.
Changpeng Zhao also made a point of responding, not without humor, to the accusations of the CFTC concerning the 300 accounts held by Binance:
“On a personal level, I use Binance, and I have two accounts there: one for the Binance Card and another for my cryptocurrency holdings. I eat our dog food and store my crypto on Binance.com. I also need to convert crypto from time to time to pay my expenses or for the card. »
Binance claims to have an internal policy that prohibits its staff from using certain platform services
Strict regulations govern the behavior of its staff
Regarding the behavior of his workers, Mr. Zhao insisted on recalling certain realities. Thus, an internal regulation forbids selling off a token purchased less than 90 days ago, which means that short-term trading is not allowed. In the same vein as purchasing Futures or participating in the programs offered by Launchpad for staff members who have access to sensitive information. He claims to have never participated in any of his services.
He will close by emphasizing that he chooses to devote his time to establishing a robust platform at the service of his users. And even though Binance isn’t perfect, he goes on to say, his teams are working hard to find solutions to issues with regulators all over the world. “In this journey to money freedom, we don’t expect everything to be easy and we won’t shy away from challenges” will serve as a conclusion to this answer.
Changpeng Zhao Will he succeeds in convincing the regulator of the good faith of his company? A simple letter will not be adequate, and the teams of Binance will have no choice but to prepare for potential future clashes with American authorities. Even on this side of the Atlantic, things appear to be getting more problematic for the cryptocurrency ecosystem as a whole. The year 2023 will undoubtedly be the year in which regulation is implemented.
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