History has no “food”

Shortly after a report from Bloomberg on Friday that the cryptocurrency exchange Binance was investigated to allow US citizens to conduct illegal transactionsBinance founder and CEO Changpeng Zhao (better known as CZ) dismissed the reports during a live AMA at the clubhouse, saying the report was unfounded.

“This is a topic that literally popped up a few minutes or an hour ago”said CZ. “So number one, the news article said there was no” I don’t have it in front of me “, there was no” wrongdoing “, I have to expose it. So number one, there were no reports of Binance wrongdoing, so he defeated himself Report itself. “

CZ noted that as a company Binance maintains a “no comment” policy on communicating with regulators, which puts the company in a difficult position when it comes to disproving the contents of the report.who cites a single anonymous source.

History has no “food”
History has no “food”

An investigation does not mean that “they are trying to accuse us of doing something to us” and that the report could just be a routine communication, he said.

Without giving examples CZ said that similar cases of misunderstanding had occurred in the past and that the “story was unfounded”.

In particular, he also claimed that “self-described competitors” could bribe or pressure journalists into publishing stories with many allegations and little content.

CZ had a complex relationship with the media over the past year. Earlier this month, Binance quietly withdrew a defamation lawsuit against Forbes and two of its journalists.

“We have a very cooperative attitude with all agencies around the world, not just the US. We have an active dialogue with regulators.”he added.

Cracks in the geofence

Reports that the CFTC is investigating whether or not US users traded illegally on the exchange should come as no surprise, as it admitted last November that US traders are finding “clever” ways to circumvent the ban.

However, this morning CZ vigorously defended Binance’s KYC / AML guidelines.

“I can comment publicly that Binance probably has the strongest KYC / AML program in the industry,” he said. to????[…] We do a very careful and strict KYC / AML. We also use very smart geofences. “

He added that the company frequently inadvertently “mislabels” travelers to the US and claims that the standards are often “too strict”.

Yet, He also reiterated that US users often try to bypass existing systems, noting that the quality of their barriers needs to be “improved”.

In the end, it took on a hopeful tone that industry players and regulators can find common ground.

Right now there is kind of a gap between the industry players and regulators. Hopefully I want to see both parties fill this gap. “

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