- Binance CEO Changpeng Zhao has responded to the allegations made by the U.S. CFTC in its civil criticism.
- Zhao listed the steps taken by his crypto trade to make sure compliance with U.S. legal guidelines and insurance policies.
Changpeng Zhao, the person behind the world’s largest crypto trade Binance, has responded to the civil lawsuit introduced by the U.S. Commodities and Futures Buying and selling Fee (CFTC). The civil criticism has been described as “sudden and disappointing”, regardless of over two years of collaboration with the federal regulator.
Changpeng Zhao: We don’t agree with the characterization of the allegations
In a blog post by Binance earlier immediately, Changpeng Zhao claimed that the CFTC’s criticism contained an incomplete recitation of information. The CEO didn’t agree with the characterization of a number of points alleged within the regulator’s criticism. Of the a number of points alleged, CZ responded to 4 key points, with extra to return sooner or later.
The weblog publish acknowledged out by reiterating:
“Upon an preliminary overview, the criticism seems to comprise an incomplete recitation of information, and we don’t agree with the characterization of most of the points alleged within the criticism.”
Talking on Binance’s compliance with U.S. legal guidelines and insurance policies, Zhao acknowledged that his trade had in place the best-in-class expertise to make sure compliance. This included the very best requirements in know-your-customer (KYC) and anti-money laundering (AML). He added that customers from the USA are blocked by means of varied figuring out components. A few of these measures have been IP deal with, machine fingerprints, bank card bin numbers, and extra.
In response to Zhao, Binance has dealt with over 55,000 regulation enforcement requests to this point, helping within the seizure/freezing of $160 million for the reason that starting of 2023. He highlighted the trade’s dedication to transparency and cooperation with regulators and regulation enforcement companies. The CEO additionally boasted the 16 licenses/registrations that his agency held globally.
Changpeng Zhao clarified that he personally held two accounts at Binance: one for Binance Card and one for his crypto holdings. He stated:
“I additionally by no means participated in Binance Launchpad, Earn, Margin, or Futures. I do know the most effective use of my time is to construct a stable platform that providers our customers.”
As for the trade’s workers, there’s a 90 day no-day-trading rule in place to make sure that no worker is actively buying and selling. Moreover, workers are prohibited from coaching in Futures.
Binance’s BNB token took a big hit following the CFTC’s lawsuit. The token has misplaced over 5% of its worth for the reason that information broke, and was buying and selling at $311 at press time. Within the rapid aftermath of the announcement, BNB sank as little as $306. In the meantime, Paxos Belief Firm has burned greater than $155 million of Binance USD [BUSD].