CZ laments US CFTC complaint, hits ‘incomplete recitation of facts, characterization’

POPULAR POST

Coins.ph Marks 10th Anniversary with 10% Rewards on USDC

To celebrate Coins.ph’s 10th year as the Philippines' leading crypto platform, the exchange is giving users 10% rewards on USDC this February under its...

No NFT, No Entry – How Stanible got into...

Editor's Note: This is an op-ed from Stanible founder Harry Santos on the trials and tribulations of onboarding the general public and making them...

Empowering the Future: Web3PH Hosts Gathering for Tech Leaders

 In a groundbreaking initiative to propel the nation into the digital forefront, Web3PH, in collaboration with the Department of Information and Communications Technology (DICT)...

Superteam Philippines Accelerates Web3 Journey with Grand Launch Event

Superteam, the distributed talent layer of the Solana Ecosystem, officially launches its operations in the Philippines with a dynamic event at the Marquis Events...

Filipino gamers can win exciting rewards from Aura and...

Filipino gamers are offered fun and unique opportunities as Singapore-based Web3 gaming platform Aura has partnered with Web3 game The Red Village. Aura, the exclusive...

Web3 focused Metasports.GG holds industry screening for ‘GG The...

GG The Movie revolves around Seth, an aspiring professional esports player, who navigates the Philippine stigma and challenges in trying to achieve that goal.

Binance founder and chief executive officer Changpeng Zhao hit the US Commodity Futures Trading Commission (CFTC) for its “unexpected and disappointing” civil complaint against the cryptocurrency exchange even he reiterated the platform’s commitment to transparency and cooperation with regulators.

Zhao or “CZ” as he is known lamented the CFTC sued his company despite Binance working cooperatively with the CFTC for over two years.

“Upon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint,” Zhao said.

“At Binance, we look for amicable solutions to all problems. We are collaborative with regulators and government agencies all around the world. While we are not perfect, we hold ourselves to a high standard, often higher than what existing regulations require. And above all, we believe in doing the right thing by our users at all times.,” he said.

The CFTC has filed a lawsuit against Zhao and Binance, the world’s largest crypto exchange, for offering trades for cryptocurrencies that the regulators said are commodities.

The CFTC also alleged that Binance advised its US clients, among others, to use VPNs to evade regulations.

Zhao sought to address some issues raised against Binance, including compliance.

He said 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 remains today to have one of the highest standards in KYC and AML,” Zhao said.

“We block US users by nationality (KYC), IP (including commonly used VPN endpoints outside of the US), mobile carrier, device fingerprints, bank deposit and withdrawals, blockchain deposits and withdrawals, credit card bin numbers, and more,” he said.

He said the exchange remains committed to transparency and cooperation with regulators and law enforcement (LE)  in the US and globally. 

“Binance currently has more than 750 people in our Compliance teams, many with prior law enforcement and regulatory agency backgrounds. To date, we have handled 55,000+ LE requests, and assisted US LE freeze/seize more than $125 million in funds in 2022 alone and $160 million in 2023 so far,” he said.

He said stressed Binance does not trade for profit or manipulate the market under any circumstances.

“Binance ‘trades’ in a number of situations. Our revenues are in crypto. We do need to convert them from time-to-time to cover expenses in fiat or other crypto currencies,” Zhao said.

“Personally, I have two accounts at Binance: one for Binance Card, one for my crypto holdings. I eat our own dog food and store my crypto on Binance.com. I also need to convert crypto from time-to-time to pay for my personal expenses or for the card,” he said.

Subscribe to our newsletter

Its easy to be smart about crypto, allow us to send you weekly updates on digital assets, crypto, NFTs and fintech.

WANT TO KNOW MORE?