CZ recently dismissed a CFTC complaint seeking a permanent US injunction against Binance and its executives.
binance CEO Changpeng ‘CZ’ Zhao Is react Commodity Futures Trading Commission (CFTC) Complaint against the Exchange. In response to federal agency call In seeking the US injunction against Binance, CZ raised several issues alleged in the complaint. CZ also said that the CFTC filed an “unpredictable and frustrating civil” complaint despite Binance’s prior cooperation with the agency. Pointing to the exchange’s two-year cooperation with the CFTC, Zhao addressed some of the key points raised by the government agency.
The CFTC complaint seeks a permanent trading and registration ban on Binance because the exchange lacks control over potentially illegal transactions. Furthermore, the Washington, DC-headquartered commission also accused Binance of conducting clandestine trading on its own platform. According to the CFTC, exchange officials were aware of and approved of these illegal schemes.
CZ’s Detailed Response to the CFTC Complaint
However, CZ disputed the CFTC’s claims of non-compliance, saying:
“Binance has developed best-in-class technology to ensure compliance. Binance.com is the first global (non-US) exchange to implement a mandatory KYC program, and continues to be one of the highest standards in KYC and AML today Is.
Binance CEO explained in detail how the company implements its airtight compliance program. These include mobile carriers, device fingerprints, and blockchain deposits and withdrawals. According to Zhao, no other company employs a more effective or comprehensive compliance system than Binance.
On the allegations of trade manipulation and duplicity, the CEO of Binance said:
“Binance does not trade for profit or “manipulate” the market under any circumstances. Binance “trades” in many situations. Our revenue is in crypto. To cover expenses in fiat or other crypto currencies.” We need to replace them from time to time. We have affiliates that provide liquidity for less liquid pairs. These affiliates are specially monitored to avoid huge profits.”
CZ also pointed to Binance’s commitment to “transparency and cooperation with regulators and law enforcement” in and outside the US. The CEO revealed that the world’s largest crypto exchange employs over 750 people in its compliance teams. According to Zhao, many of these individuals have law enforcement and regulatory agency backgrounds. CZ also added that Binance’s compliance team continues to cooperate with other regulators in the US and around the world.
On registration and licensing, Zhao pointed out that Binance leads the sector globally with 16 licenses/registrations “and counting”. In his opinion, this development shows how well the user community regards Binance as a crypto exchange powerhouse.
The CFTC Has A Bone To Pick With Binance
The CFTC used a number of private communications and company documents to support its complaint against Binance. Citing Zhao and Binance executive Samuel Lim in its federal complaint, the CFTC called for criminal action against the two.
The commission also raised other specific issues Against leading crypto exchange. It states that Binance USD and Litecoin are commodities and raises issues about whether Binance.US is separate from Binance. In addition, the CFTC cited Binance’s VIP program for large accounts and questioned its integrity. According to the agency, the VIP program is complicit in obscuring the activities of its users from law enforcement.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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