Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Binance CEO CZ Responds to US Regulators’ Charges – Regulation Bitcoin News
Binance CEO Changpeng Zhao (CZ) has addressed the allegations against him by the US Commodity Futures Trading Commission (CFTC). “We do not agree with the characterization of many of the issues alleged in the complaint,” the executive stressed.
CZ Responds to CFTC’s Allegations
The CEO of cryptocurrency exchange Binance, Changpeng Zhao (CZ), published a blog post on Monday to address civil enforcement action against him and his crypto exchange by the US Commodity Futures Trading Commission (CFTC). The US regulator accused Zhao and three entities that operate the Binance platform “of numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations.”
Noting that the CFTC’s civil complaint against him and Binance was “unexpected” and “disappointing,” Zhao explained:
Upon initial review, the complaint appears to contain an incomplete recitation of the facts, and we disagree with the characterization of many of the issues alleged in the complaint.
“We will only be able to provide full answers in due time,” CZ noted, going on to address some key points. First, he claimed that “Binance.com has developed best-in-class technology to ensure compliance,” adding, “We block US users by nationality (KYC), IP (including commonly used VPN endpoints outside the US), mobile operator, device fingerprint, bank deposits and withdrawals, blockchain deposits and withdrawals, credit card container numbers and more.”
The executive emphasized that his crypto firm is “committed to transparency and cooperation with regulators and law enforcement (LE)” both in the US and globally, elaborating:
Binance currently has more than 750 people on our compliance teams, many with previous backgrounds in law enforcement and regulatory agencies.
He added that to date, Binance has handled more than 55,000 law enforcement requests and helped US authorities freeze and seize more than $125 million in funds in 2022, and $160 million in 2023 so far. “We intend to continue to respect and cooperate with US and other regulators around the world,” CZ emphasized, adding that “Binance.com has the highest number of licenses/registrations globally, 16 and counting.”
After revealing that he personally has two accounts with Binance, one for the Binance Card and one for his crypto holdings, Zhao claimed that Binance.com does not engage in trading for profit or market manipulation. “Binance.com has a 90-day no-trade rule for employees, which means you are not allowed to sell a coin within 90 days of your last purchase, or vice versa,” he further shared. “We also prohibit our employees from trading in Futures. Furthermore, we have strict guidelines for anyone with access to private information, such as listing details, Launchpad, etc. They are not allowed to buy or sell these coins.”
The Binance CEO concluded:
I strictly follow these guidelines myself. I have also never participated in Binance Launchpad, Earn, Margin or Futures.
What do you think of Binance CEO Changpeng Zhao’s response to the CFTC’s allegations? Let us know in the comments section below.
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