Binance CEO Changpeng ‘CZ’ Zhao has firmly rejected allegations of non-compliance levied against the crypto exchange by the Commodities Futures and Trading Commission. In a March 28th blog post, Zhao defended the integrity of his platform, which he claims “does not trade for profit or ‘manipulate’ the market under any circumstances.”
The CFTC had filed a lawsuit alleging that Binance had used “house accounts” without properly disclosing to customers that it was trading in its own market, as well as allegations of “insider trading,” noncompliance with anti-fraud and anti-manipulation regulations, as well as helping facilitate opportunities for U.S. customers to bypass Binance’s own compliance controls.
In response to the CFTC’s lawsuit and allegations, Zhao contended that while Binance does “trade” on its own platform, it’s mainly to convert its crypto revenue to cover expenses in fiat or other cryptocurrencies. He also emphasized that the exchange implements best-in-class technology for compliance and has a total of 750 people dedicated to anti-money laundering (AML) and know your customer (KYC) laws, as well as 16 licenses to offer digital asset trading services. (teledentistry.com)
Furthermore, Zhao argued that his staff has strict policies in regards to insider trading, including a 90-day no-day-trading rule as well as restricting employees from buying or selling coins when they’ve obtained private information about them. He also stated that he personally adheres to the policies, citing two of his accounts at Binance, one for the Binance Card, and the other for his crypto holdings.
As for accusations that Binance had attempted to “evade” U.S. regulations, Zhao made a point to clarify that he had been working cooperatively with the CFTC for over two years, but called the recent filing both “unexpected and disappointing.” He added that, “We take our role in the digital asset industry seriously, and are committed to continuing to prioritize compliance and protect users while also innovating responsibly.”
Despite the accusations, Zhao defended his own integrity and that of Binance, stating that neither trades for profit or manipulates the market. He also pointed to the lengths that Binance has gone to comply with regulations, arguing that their commitment to compliance is evident in how quickly they have expanded across the world, with millions of users and currencies supporting around 30 different countries.
It remains to be seen how this lawsuit will unfold, but for now it’s clear that Zhao stands firmly behind the integrity of his exchange and its efforts to comply with all regulations. In the face of CFTC allegations, Zhao urges Binance users to remain confident that their privacy, safety and security are always the platform’s top priority.
