The founder and CEO of BinanceChangpeng Zhao or CZ says more needs to be done to prevent “smart” US traders from illegally accessing their global exchange.
In one Interview with Bloomberg, CZ said his replacement should be “smarter about how we prevent US merchants from accessing the platform”. He said:
“Basically, we continuously try to improve our blocking. Sometimes there are people who bypass our block and still want to use the platform, and we need to find a smarter way to protect that, and when we do, we block them. “
Binance, the world’s largest cryptocurrency exchange by volume, stopped serving US dealers in September 2019 by regulatory risks. The exchange would then start Binance.US in cooperation with BAM Trading Services, approved by the Financial Crimes Enforcement Network for American clients.
CZ repeated this to Bloomberg on Friday Binance.US is a separate entity The company licenses technology from Binance and receives branding support from the Malta-based exchange.
The trading volume at Binance.US is said to be only a small fraction of Binance’s daily turnover. However, the amounts reported are often excessive and do not represent actual business activity. As Cointelegraph has reported, Large exchanges continue to advertise forged volumes.
Several cryptocurrency exchanges have struggled to gain a foothold in the US as the country has an inconsistent legal approach to digital assets. Just last month the Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against BitMEX for operating an unregistered futures exchange.
At the same time, The Department of Justice is seeking criminal punishment on the BitMEX leadership team for facilitating money laundering to and from the US.
In response, The exchange announced new commercial surveillance measures and AML to eliminate bad actors.
Binance officials did not respond to a request for comment.