Binance CEO, Changpeng Zhao, has denied allegations of market manipulation following the Commodities Futures and Trading Commission (CFTC) complaint which was filed against the company. In a recent blog post, Zhao stated that Binance does not trade for profit or manipulate the market under any circumstances.
According to Zhao, while Binance does trade in certain situations, it’s mainly to convert them from time-to-time to cover expenses in fiat or other cryptocurrencies as its revenues are in crypto. Zhao stated that he also uses Binance for his crypto holdings and Binance card, and he needs to convert crypto from time to time to pay for his personal expenses or for the card.
However, Zhao also pointed out that Binance has a 90-day no-day-trading rule for employees, which is aimed at preventing any employees from actively trading. Also, Binance prohibits its employees from trading in futures to avoid any conflict of interest.
Additionally, Binance employees are restricted from buying or selling coins where they’ve obtained “private information” about them, and Zhao observes these policies strictly. He further said that he has never participated in Binance Launchpad, Earn, Margin, or Futures, as the best use of his time is to build a solid platform that services its users.
Despite these measures, the CFTC recently filed a complaint against Binance. Zhao called it both unexpected and disappointing, as the company had been working cooperatively with the regulator for over two years. He also noted that the complaint appears to contain an incomplete recitation of facts.
Regarding compliance allegations, Zhao stated that Binance.com has developed “best-in-class” technology to ensure compliance and currently has more than 750 people working to ensure their business operates within the bounds of anti-money laundering (AML) and know your customer (KYC) laws. To date, the company has 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.
Zhao added that Binance.com holds 16 licenses to offer digital asset trading services, the most of any cryptocurrency trading platform. He also mentioned that Binance has launched charitable initiatives, including the Binance Charity Foundation, which has raised over $30 million for charitable projects worldwide.
The allegations raised against Binance are not the first of its kind, as several other exchanges have faced scrutiny from regulators in recent years. The CFTC, in particular, has been actively cracking down on cryptocurrency exchanges that it believes are operating outside regulatory boundaries.
In conclusion, while Binance CEO, Changpeng Zhao, has denied the allegations of market manipulation and compliance issues raised against the company, it remains to be seen how it will affect the future of the company. However, the fact that the company has developed “best-in-class” technology to ensure compliance, holds 16 licenses to offer digital asset trading services, and has launched charitable initiatives speaks to its commitment to operating within regulatory frameworks and making a positive impact in the world.
