On Monday, a new report published by Reuters alleged that cryptocurrency exchange Binance “deflected scrutiny” from regulators in the UK and US. The main spearhead of the allegations stems from two alleged incidents in its operating history. .

First, Reuters wrote about Binance strategy executive Zoe Wei’s proposal to roll back a service agreement related to various trades between Binance’s UK unit and Binance’s Cayman Islands holding company on March 11. 2020. The move reportedly allowed Binance to exempt itself from registration with the country’s Banco Financiero. Conduct authority for one year, as any company operating before January 10, 2020 could do so before new regulations come into force.

Second, Reuters reported that Harry Zhou, a Binance-affiliated businessman, submitted a proposal in November 2018 that would allegedly direct authorities’ attention to a US entity rather than Binance itself. Reuters alleged that the proposal arose because “despite the ban on US users [due to financial crime laws]Binance knew that traders were still using the main platform.”

Hours later, Changpeng Zhao (CZ), CEO of Binance, published a rebuttal to the Reuters report. In the article, CZ specifically addressed the allegations surrounding his US entity:

“This is the story of the so-called “Tai-Chi [defensive action] PowerPoint”, which was put forward by an outside consultant as a suggestion on how to set up a business in the US. Let me state clearly once again for the record: it was never implemented. I personally rejected it.

Regarding its regulatory framework, CZ explained that Binance’s market capitalization has “multiplied exponentially” in a short period of time and that “there is no manual that explains how to immediately go from a small startup to a Fortune organization.” 100″. .” “But we are learning fast,” he said, noting that Binance is the first major exchange outside the US for KYC users. However, the crypto executive did not provide comment on Reuters’ allegations of his conduct in the UK. United.



This post New Complaints Emerge Regarding Binance’s Regulatory Framework

was published first on https://cointelegraph.com/news/new-allegations-arise-regarding-binance-s-regulatory-framework

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