Binance CEO Changpeng Zhao, popularly known as CZ, has responded to the recent civil complaint filed by the United States Commodity Futures Trading Commission (CFTC). In a blog post, CZ expressed disappointment over the unexpected complaint and disputed many of the issues alleged in the complaint.
CZ clarified that Binance, the world’s top exchange, has developed best-in-class technology to ensure compliance with KYC and AML regulations. He added that Binance.com remains one of the highest standards in KYC and AML and blocks US users through multiple measures, including IP, nationality, mobile carrier, device fingerprints, and more.
Binance is committed to transparency and cooperation with regulators and law enforcement globally. The exchange has over 750 people in its compliance teams, many with prior law enforcement and regulatory agency backgrounds, and has assisted US LE freeze/seize more than $125 million in funds in 2022 alone and $160 million in 2023 so far.
CZ emphasized that Binance holds the highest number of licenses/registrations globally, with 16 and counting, and is well-regarded by its user community. The exchange does not trade for profit or manipulate the market under any circumstances, and CZ himself has never participated in Binance Launchpad, Earn, Margin, or Futures.
At Binance, the CEO noted that there is a strict 90-day no-day-trading rule for employees, prohibiting employees from actively trading. Binance also has strict policies for anyone with access to private information, such as details of listings, Launchpad, etc. They are not allowed to buy or sell those coins.
CZ expressed that Binance looks for amicable solutions to all problems and is collaborative with regulators and government agencies around the world. He added that Binance holds itself to a high standard, often higher than existing regulations require, and above all, believes in doing the right thing by its users at all times.
