Binance CEO CZ Responds to CFTC's Charges and Defends Compliance Measures

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Binance CEO CZ Responds to CFTC's Charges and Defends Compliance Measures

Binance CEO Changpeng Zhao (CZ) has responded to the U.S. Commodity Futures Trading Commission's (CFTC) allegations against him and the cryptocurrency exchange platform. CZ stated that he disagrees with many of the issues alleged in the complaint and called the CFTC's civil enforcement action "unexpected" and "disappointing." He added that has developed top-notch technology to ensure compliance and has implemented various measures to block U.S. users, including KYC and IP blocking.

CZ also emphasized Binance's commitment to transparency and cooperation with regulators and law enforcement agencies, both in the U.S. and globally. He noted that Binance has more than 750 people in its compliance teams, with many of them having prior law enforcement and regulatory agency backgrounds. Additionally, Binance has handled more than 55,000 law enforcement requests and assisted U.S. authorities in freezing and seizing more than $160 million in funds so far in 2023.

The Binance CEO revealed that he personally has two accounts at Binance, one for Binance Card and one for his crypto holdings, but clarified that does not engage in trading for profit or market manipulation. He added that the platform has strict policies for anyone with access to private information and that they are not allowed to buy or sell those coins. CZ concluded by stating that he observes these policies strictly himself and never participated in Binance Launchpad, Earn, Margin, or Futures.

The CFTC charged Zhao and three entities that operate the Binance platform with numerous violations of the Commodity Exchange Act and CFTC regulations. The U.S. regulator's civil complaint alleges that Binance allowed U.S. residents to trade on its platform, failed to register with the CFTC, and engaged in wash trading, among other violations.

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