Binance CEO denies allegations of circumventing US regulations.

Binance CEO Changpeng Zhao has denied allegations that the cryptocurrency exchange set up its US arm to sidestep regulations.

Earlier this week Forbes reported that it obtained a leaked “Tai Chi” document outlining the company’s plans to circumvent financial regulations in the US. Binance CEO has claimed that the statements and accusations in the article are incorrect. He also noted that the Forbes article was based on a third-party document that was not produced by any former or current Binance employee.

 

Binance CEO denies all accusations as baseless. 

Changpeng Zhao said that anyone can produce a ‘strategy document,’ but it does not mean Binance follows them. The Forbes article had claimed that the leaked document showed the exchange intended to set up a “Tai Chi entity” in 2018 to protect its operations from the country’s regulatory scrutiny. It said the US operation would distract the regulators with “feigned interest in compliance,” while measures would be taken to move the revenue moves from the US operation to the parent Binance company in the form of licensing fees. “All the while, potential customers would be taught how to evade geographic restrictions while technological work-arounds were put in place,” the Forbes article said.

 

“Binance has always operated within the boundaries of the law.” 

CZ tweeted that Binance always operated within the boundaries of the law, and this was reflected in its many international exchanges such as Binance U.S, Binance Korea, and Binance Singapore. “Binance has always approached every location with proper licensing and applications.” CEO also disputed claims that the crypto exchange is trying to bypass regulations, citing its partnership anti-money laundering/countering financing of terrorism (AML/CFT) tools and vendors like Ciphertrace and Refinitive.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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