No other company's system is more comprehensive and effective than Binance's

Original title: CZ's Response to the CFTC Complaint

Source: Binance

Crypto trading platform Binance and its CEO, CZ, were sued by the US Commodity Futures Trading Commission (CFTC) on March 27 for alleged violations of trading and derivatives rules. According to the lawsuit filed by the CFTC, Binance and its CEO, CZ, violated U.S. Commodity Trading Commission rules, including the Commodity Trading Act, by soliciting and accepting orders from U.S. customers without any registered authority for commodity futures trades, options, swaps and leveraged retail commodity trades that were not completed on the trading platform. And no compliance registration has been made.In response to the civil action filed by the CFTC, CZ issued the following statement on Binance's website:

Today, despite more than two years of cooperation, the CFTC filed an unexpected and disappointing civil complaint.

Upon preliminary review, the lawsuit appears to contain an incomplete factual record, and we disagree with the presentation of many of the issues alleged in the lawsuit. While we can only give a full response in due time, we address some key issues below.

Compliance technology and the US blockade.Binance has developed best-in-class technology to ensure compliance. Binance was the first (non-US) trading platform in the world to implement a mandatory KYC program and continues to have the highest standards of KYC and AML. We block US users by nationality (KYC), IP (including VPN endpoints commonly used outside the US), mobile carriers, device fingerprints, bank deposits and withdrawals, blockchain deposits and withdrawals, and credit card bin numbers.

We don't know of any company that uses a more comprehensive or effective system than Binance.

Cooperation and transparency with law enforcement.Binance is committed to transparency and cooperation with U.S. and global regulators and law enforcement. Binance currently has more than 750 compliance team members, many of whom have backgrounds in law enforcement and regulatory agencies. To date, we have processed more than 55,000 law enforcement requests and assisted U.S. law enforcement in individually freezing/forfeiting more than $125 million in 2022 and $160 million so far in 2023.

We intend to continue to respect and cooperate with US and other global regulators.

Registration and licensing.Binance has the largest number of licenses/registrations in the world, 16 and counting, and is highly regarded by our user community.

Trade.Binance does not trade for profit or to "manipulate" the market under any circumstances. Binance "trades" in many cases. Our revenue is based on cryptocurrencies. From time to time, we need to convert them into legal tender or other cryptocurrencies to cover our expenses. We have partners to provide liquidity for low liquidity trading pairs. These partners are specially monitored to ensure they do not make large profits.

Personally, I have two accounts on Binance: one for my Binance card and one for my cryptocurrency holdings. I use our own products and store my cryptocurrency on Binance. I also need to exchange cryptocurrencies for legal tender from time to time to pay for personal expenses or card fees.

Binance has a 90-day no-trade policy for its employees, which means they are not allowed to trade within 90 days of a recent purchase or sale of a currency. We also prohibit our employees from trading futures. In addition, we have strict policies regarding anyone who has access to private information, such as coin details, Launchpad, etc. They are not allowed to buy or sell these currencies.

I myself strictly abide by these policies. I also never participated in Binance Launchpad, Earn, Margin or Futures. I know that the best use of my time is to build a solid platform that serves our users.

At Binance, we seek amicable solutions to all problems. We work with regulators and government agencies around the world. While we are not perfect, we hold ourselves to high standards, often higher than existing regulations. Most importantly, we always believe in doing the right thing for our users at all times. In this journey towards monetary freedom, we do not expect everything to be easy. We don't shy away from challenges.

Thank you for your support all the time!

CZ

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