Changpeng Zhao, CEO of Binance, vehemently objected to allegations that the cryptocurrency exchange created a subsidiary in the United States in order to circumvent the rules and secretly make money from investors.
According to an article published Oct. 29 by Forbes author Michael Del Castillo, the news agency claims it received a good offer outlining Binance’s plans to operate in the US. The document notes that in 2018 – before the launch of Binance.US – the cryptocurrency exchange aims to create a “Taiji Corporation” in the United States, which will act as a kind of regulatory lightning that protects core businesses from execution.
“Although the then unnamed organization started its business in the United States to distract regulators with a false interest in compliance, steps will be taken to transfer revenue in the form of license fees and other things to parent company Binance,” Castillo said. … … … “At the same time, potential customers will be taught to circumvent geographic restrictions when making technology decisions.”
In response, about an hour after the article was published, Changpeng Zhao (Czech Republic) challenged several allegations, stating that the source – a leaked document – “was not created by a Binance employee.” Castillo believes the show was created by Harry’s former employee Zoe.
“Binance has always acted within the law,” said the CEO. We do not accept the purported document. ”
CZ stated that the company’s opening of exchanges in several countries signifies its willingness to comply with the rules “with appropriate licenses and applications,” and stated that Binance “works very closely with many prominent police authorities around the world.” He said that Binance’s US operations have “very strict restrictions and procedures.”
However, a Forbes report shows parallels between the Tai Chi plan, which was allegedly developed in 2018, and the Binance.US track, which launched in September 2019. The exchange currently operates in 40 US states.
Castillo said the document indicated that the business unit was encouraged to participate in the US Department of Homeland Security’s Corner Program to identify weaknesses in financial systems in order to “divert attention” to agencies including the US Treasury Financial Crime Network (FinCEN) and Asset Management … … … Stranger. Or the Foreign Assets Control Board, Securities and Exchange Commission, Securities and Exchange Commission, Commodity Futures Trading Commission, Commodity Futures Trading Commission, New York City Department of Financial Services, or NYDFS. According to Forbes, Binance’s US division did just that.
The ownership structure of Binance.US, operated by BAM Trading Services in San Francisco, is somewhat controversial. Binance CEO Catherine Cooley said that Binance has no ownership and CZ described itself as Binance.US as an “independent marketplace,” but Castillo said the leaked document states that BAM will continue to “license trade and wallet technology” from cryptocurrencies. exchange.
The presentation is believed to have prompted companies to use virtual private networks or VPNs to hide the whereabouts of cryptocurrency traders and bypass existing regulations. Residents of ten US states are not legally allowed to use Binance, but at the time of publication, Binance Academy has a VPN guide for newbies on its website. CZ has also promoted this technology on Twitter.
In response to comments on Twitter, CZ stated, “Anyone can create a ‘strategy document’, but that doesn’t mean Binance is following it.