Binance calls CFTC charges ‘unexpected,’ says it will cooperate with regulators News ▸ US ▸ Binance ▸ Regulation
Binance calls CFTC charges ‘unexpected,’ says it will cooperate with regulators
The company said is complies with regulations but didn't address specific charges.
2 min read
Updated: Mar. 27, 2023 at 9:41 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance has responded to charges filed by the Commodities and Futures Trading Commission (CFTC) in a statement provided to CryptoSlate on March 27.
Binance comments on CFTC charges
A Binance spokesperson called the CFTC’s charges “unexpected and disappointing” and said that Binance has worked with the regulator for over two years.
That spokesperson said that Binance blocks all U.S. residents and U.S. citizens living abroad and blocks U.S. cell phones, IP addresses, and credit cards. They also said that Binance imposes mandatory KYC (know-your-customer) checks on all customers globally.
Those statements seemingly refute the charges put forward by the CFTC earlier on March 27. In those allegations, the CFTC asserted that Binance “solicited and accepted orders” and provided other investment products to individuals in the United States.
However, the CFTC also made more specific claims against Binance. The regulator said that the exchange and its executives willfully evaded regulations, did not impose identity verification at times, and told customers how to avoid compliance controls — meaning that Binance has not fully addressed the details of the regulator’s allegations.
The CFTC additionally said that the cryptocurrencies involved in Binance’s offerings — Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) — qualify as commodities.
Binance says it will engage with all regulators
Binance said that, despite its lack of U.S. services, it intends to continue working with U.S. and global regulators. It said it has expanded its compliance team to more than 750 members and said said it has spent an additional $80 million on compliance partnerships.
Binance has already built a worldwide presence. Though Binance does not serve U.S. customers directly, its independent partner Binance.US has done so since 2019. Yet Binance.US itself has come under fire for its potential involvement in regulatory evasion and its apparent ties to firms managed by Binance CEO Changpeng Zhao.
The exchange also operates elsewhere: as of December 2022, it served 140 countries and had secured 14 licenses in African, European, and Asia-Pacific countries.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.