- CZ refutes CFTC’s improper trading allegations
- Binance enforces strict employee trading rules
- Binance holds 16 trading licenses
In a twist of events, Binance CEO Changpeng “CZ” Zhao has vehemently denied accusations from the Commodities Futures and Trading Commission (CFTC), maintaining that the crypto exchange does not trade for profit or manipulate the market under any circumstances.
On March 28, CZ penned a blog post in response to the CFTC’s lawsuit, which accuses Binance and CZ of improper compliance procedures and trading practices. He called the allegations an incomplete recitation of facts. The CFTC claims that Binance used 300 “house accounts” to trade on its own platform without disclosing this information to its customers in its Terms of Use.
The commission further alleges that Binance kept this information a closely guarded secret and refused to comply with investigative subpoenas seeking information on its trading activity. However, CZ argues that while Binance does engage in trading, the primary objective is to convert crypto revenue into fiat currency to cover expenses.
Moreover, CZ dismissed the notion of “insider trading” within the company. He stated that Binance enforces a 90-day no-day-trading rule for employees and restricts them from buying or selling coins when they have obtained “private information” about them. CZ emphasized his own adherence to these policies and highlighted his focus on building a solid platform for users.
The CFTC filing came as a surprise to Zhao, who expressed disappointment, considering the exchange’s cooperative efforts with the regulator for over two years. CZ denies any lack of compliance, highlighting Binance.com’s “best-in-class” technology and a 750-strong team dedicated to ensuring adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
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Lastly, CZ drew attention to Binance.com’s 16 licenses for offering digital asset trading services, the highest number held by any cryptocurrency trading platform, as further evidence of its commitment to compliance.
In other news, as confirmed by a statement from the Federal Deposit and Insurance Commission, North Carolina’s First Citizens Bank has boldly revealed its intention to buy all deposits and loans of the prestigious Silicon Valley Bank (FDIC).
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