CZ Junks Several of CFTC Allegations Against Binance

The Chief Executive Officer of Binance, Changpeng ‘CZ’ Zhao, has responded to the complaint lodged against the exchange by the Commodities Futures Trading Commission (CFTC).

CZ brought up many points in response to the federal agency’s request for a US injunction against Binance, and these issues are alleged in the lawsuit. CZ further stated that the CFTC had launched the “unexpected and disappointing civil” action in spite of Binance’s previous cooperation with the regulator.

Zhao addressed (1) many significant topics brought up by the CFTC while highlighting the exchange’s two-year partnership with the federal agency.

Binance is the subject of a complaint filed by the Commodity Futures Trading Commission (CFTC), which aims to impose a permanent trade and membership ban on the platform because it cannot allegedly regulate potential illegal transactions.

In addition to this, the Commission, which has its headquarters in Washington, DC, charged Binance of engaging in illicit trading on its own site.

According to the CFTC, the management of the exchange was aware of these illegal activities and gave their approval for them.


Full Answer by CZ to the Complaint Made by the CFTC

CZ, however, responded to the allegations of non-compliance made by the CFTC by saying:

“Binance has developed the technology that is at the forefront of its industry to ensure compliance. was the first global (non-US) exchange for implementing a mandated Know Your Customer (KYC) program, and it continues to this day to have one of the best standards in both KYC and AML.

The Chief Executive Officer of Binance provided additional elaboration on how the firm maintains its stringent compliance approach.

They include cell carriers, fingerprints taken from devices, and deposits and withdrawals made using blockchain technology.

Zhao asserts that no other company employs compliance systems that are either more effective or more extensive than Binance.

About allegations of market manipulation and dishonesty, the chief executive officer of Binance stated:

“Binance does not engage in “manipulation” of the market in any way, nor does it trade with the intention of making a profit. Binance is involved in a number of different “trades.”

Our earnings are done in cryptocurrency. We will occasionally need to change them into other cryptocurrencies or fiat currencies so that we can pay for our expenses.

We have partners who are able to provide liquidity for currency pairs with lower volume. These affiliates are supervised with the express purpose of preventing them from making excessive profits.

Moreover, CZ reaffirmed Binance’s dedication to “transparency and collaboration with authorities and law enforcement” both within and beyond the borders of the United States.

The chief executive officer of the world’s largest cryptocurrency exchange disclosed that the company’s compliance teams employ more than 750 employees.

According to Zhao, a significant number of these people had prior experience working for regulatory agencies or law enforcement.

CZ also stated that Binance’s compliance team is continuing to cooperate with US regulators and regulators from other countries worldwide.

On the issuance of licenses and registrations, Zhao mentioned that Binance is now in first place worldwide with 16 licenses/registrations “and counting.”

According to his point of view, this new development demonstrates how highly the user community perceives Binance as a powerful cryptocurrency exchange.


The CFTC Has a Difference of Opinion with Binance

The CFTC supported its complaint against Binance with evidence from a number of internal corporate conversations as well as company documents.

The Commodity Futures Trading Commission (CFTC) requested for criminal action to be taken against Zhao and Binance CEO Samuel Lim in its federal complaint.

The Commission also brought up a number of other separate complaints against the foremost cryptocurrency exchange.

It was asserted that Binance USD and Litecoin are commodities, and it brought up questions about whether or not Binance.US is independent of Binance.

Also, the CFTC brought up Binance’s VIP Program for big accounts and challenged the genuineness of the program’s intentions.

The agency claims that the VIP Program helps users conceal their activities from law enforcement and is therefore participating in this activity.


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