The cryptocurrency world was thrown into turmoil when the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, the world’s largest centralized exchange, and its CEO Changpeng Zhao “CZ.”
While this was a shock to many, CZ has responded to the allegations with a detailed blog post. Here’s what he had to say.
Technology for compliance and US blocks
Zhao started by defending Binance’s technology, which he claimed was “best-in-class” in terms of ensuring compliance. He explained that Binance was the first global exchange to implement a mandatory KYC program and still has one of the highest standards in KYC and AML.
Furthermore, Binance blocks US users by nationality, IP, mobile carrier, device fingerprints, bank deposits and withdrawals, blockchain deposits and withdrawals, credit card bin numbers, and more.
Zhao went on to say that he is not aware of any other company using systems that are more comprehensive or effective than Binance.
The company has invested significantly in ensuring that US users are not active on the platform, including blocking users identified as American citizens or residents or who had a US mobile number.
Zhao on Binancec’s registrations and licenses
Zhap also highlighted that Binance holds the highest number of licenses/registrations globally, 16 and counting, and is well regarded by its user community.
He pointed out that Binance does not trade for profit or “manipulate” the market under any circumstances. He explained that Binance “trades” in a number of situations, such as needing to convert revenue from crypto to fiat to cover expenses or having affiliates provide liquidity for less liquid pairs. CZ said that Binance affiliates are monitored specifically not to have large profits.
Moreover, the Binance boss disclosed that he has two accounts at Binance: one for Binance Card and one for his crypto holdings. He added that he follows Binance’s strict policies himself and never participated in Binance Launchpad, Earn, Margin, or Futures.
Zhao emphasized that Binance holds itself to a high standard, often higher than what existing regulations require, and believes in doing the right thing by its users at all times.
The popular crypto founder ended his post by saying that Binance looks for amicable solutions to all problems and collaborates with regulators and government agencies around the world.
While he acknowledged that Binance is not perfect, he said that the company holds itself to a high standard and does not shy away from challenges. Zhao thanked Binance’s users for their unwavering support and promised to continue working towards the freedom of money.
