Binance CEO Changpeng Zhao (CZ) has addressed the allegations in opposition to him by the U.S. Commodity Futures Buying and selling Fee (CFTC). “We don’t agree with the characterization of most of the points alleged within the grievance,” the manager harassed.
CZ Responds to CFTC’s Allegations
The CEO of cryptocurrency trade Binance, Changpeng Zhao (CZ), revealed a weblog publish on Monday to handle the civil enforcement motion in opposition to him and his crypto trade by the U.S. Commodity Futures Buying and selling Fee (CFTC). The U.S. regulator charged Zhao and three entities that function the Binance platform “with quite a few violations of the Commodity Alternate Act (CEA) and CFTC rules.”
Noting that the CFTC’s civil grievance in opposition to him and Binance was “surprising” and “disappointing,” Zhao defined:
Upon an preliminary assessment, the grievance seems to comprise an incomplete recitation of information, and we don’t agree with the characterization of most of the points alleged within the grievance.
“We are going to solely be capable to give full responses in due time,” CZ famous and proceeded to handle some key factors. Firstly, he claimed that “Binance.com has developed best-in-class know-how to make sure compliance,” including: “We block U.S. customers by nationality (KYC), IP (together with generally used VPN endpoints exterior of the US), cellular provider, system fingerprints, financial institution deposit and withdrawals, blockchain deposits and withdrawals, bank card bin numbers, and extra.”
The manager emphasised that his crypto agency is “dedicated to transparency and cooperation with regulators and regulation enforcement (LE)” each within the U.S. and globally, elaborating:
Binance at present has greater than 750 individuals in our compliance groups, many with prior regulation enforcement and regulatory company backgrounds.
He added that thus far, Binance has dealt with greater than 55,000 regulation enforcement requests and assisted U.S. authorities in freezing and seizing greater than $125 million in funds in 2022, and $160 million in 2023 to date. “We intend to proceed to respect and collaborate with U.S. and different regulators world wide,” CZ harassed, including that “Binance.com holds the very best variety of licenses/registrations globally, 16 and counting.”
After revealing that he personally has two accounts at Binance, one for Binance Card and one for his crypto holdings, Zhao claimed that Binance.com doesn’t interact in buying and selling for revenue or market manipulation. “Binance.com has a 90-day no-day-trading rule for workers, which means you aren’t allowed to promote a coin inside 90 days of your most up-to-date purchase, or vice versa,” he moreover shared. “We additionally prohibit our staff from buying and selling in Futures. Additional, now we have strict insurance policies for anybody with entry to non-public info, resembling particulars of listings, Launchpad, and so on. They don’t seem to be allowed to purchase or promote these cash.”
The Binance boss concluded:
I observe these insurance policies myself strictly. I additionally by no means participated in Binance Launchpad, Earn, Margin, or Futures.
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