Shortly after Bloomberg’s report on Friday that the Binance cryptocurrency exchange was being investigated for allowing illegal residents to conduct illegal businesses, Binance founder and CEO Changpeng Zhao (better known as CZ) rejected the reports during a live AMA at Clubhouse, saying the report ” No teeth. ”
“This topic has just arrived, literally like a few minutes or an hour ago,” CZ said. “So number one, the newspaper article said it didn’t exist, I didn’t have it in front of me, there was no ‘abuse,’ I have to dig it up.
CZ noted this as a business Binance adheres to the “no comment” policy on communication with regulators, which puts the company in a difficult situation when it comes to refuting content messagewho cited the only anonymous source.
The investigation does not mean that “they are trying to accuse us, they are trying to do something with us,” and that the message can simply be routine communication, he said.
Without giving examples, CZ stated that similar cases of what he characterized as incorrect communication had happened in the past and that “the story has no teeth”.
In particular, he argued that “self-perceived competitors” could bribe or pressure journalists to publish stories full of accusations and short content.
Last year, the Czech Republic had a comprehensive relationship with the media. Earlier this month, Binance quietly overturn the defamation lawsuit against Forbes and two of his journalists.
“We maintain a very collaborative attitude with all agencies around the world, not just the United States.” We have an active dialogue with regulatory agencies, “he added.
Cracks in geophence
Reports that the CFTC is investigating whether US stock marketers listed illegal trades should come as no surprise, given that it was not until November last year that U.S. traders are finding “smart” ways to circumvent the ban.
This morning, however, the Czech Republic vigorously defended Binance’s policy towards KYC / AML.
“I can publicly comment that Binance probably has the strongest KYC / AML program in the industry,” he said. “[…] We do very careful, very strict KYC / AML. We also use very intelligent geofencing. ”
He added that the company often mistakenly “misidentifies” travelers to the United States, arguing that standards are often “too strict.”
However, he also reiterated that US users often try to circumvent established systems, noting that the quality of their barriers needs to be “improved.”
In the end, it was a hopeful tone that players in the industry and regulatory agencies could find common ground.
“Right now, there is a gap between industry players and regulators.” I hope both sides reach out and bridge the gap. ”