Binances CZ Changpeng Zhao has responded to the civil complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on March 28.
In a blog post on Binance.com he said that Binance it has developed best-in-class technology to ensure compliance, is committed to transparency and cooperation with regulators and law enforcement globally, and holds the highest number of licenses and registrations globally.
Binance also denied many of the allegations in the CFTC complaint and said that it is looking for amicable solutions to all problems. Additionally, Binance claimed that it holds itself to a higher standard than existing regulations require and that it believes in doing the right thing by its users at all times.
The lawsuit, filed in the US District Court for the Northern District of Illinois, alleges that Binance operated a derivatives trading operation in the US, offering trades for cryptocurrencies including bitcoin, ether, litecoin, tether, and Binance USD. It also alleges that the company directed employees to spoof their locations through the use of virtual private networks. Zhao, in his response, called the complaint “unexpected and disappointing” and said that it contained “an incomplete recitation of facts.” He also touted Binance’s compliance technology and its know-your-customer program.
CZ went on to address recent rumours about staff insider trading he stated:
“Binance.com has a 90 day no-day-trading rule for employees, meaning you are not allowed to sell a coin within 90 days of your most recent buy, or vice versa. This is to prevent any employees from actively trading“
Denying CFTC Charges
In Summary Binance, have denied that the facts in the lawsuits are true. CZ also says that binance will “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”