Despite the current barrage of regulatory and media criticism, Binance CEO CZ (an acronym for Changpeng Zhao) seems unconcerned. Instead, he thinks Binance can use the FUD to prove its worth. CZ noted that lawsuits had been brought against Binance as an example of such enforcement actions and added, “I think right now, it does feel like there is a lack of clarity in the crypto regulations and they’re just doing enforcements,” which was a bit depressing.
To put it another way, “maybe things can go more smoothly if we talk to each other and work together.” “We are a much stronger company today than we were two years ago, I think,” CZ said, adding that Binance is “way ahead of the game in terms of regulatory compliance.” The SEC filed a complaint against CZ, Binance, and Binance US on June 5. CZ’s perspective is at contrast with the SEC’s charges.
He gave the examples of France, Hong Kong, and Japan as places that have made “positive” changes to their regulatory systems. CZ noted favorable judicial outcomes for Ripple Labs and asset management Grayscale in the United States. While CZ is accurate that Binance is still the largest exchange in the world, the litigation has harmed the company.
Coingecko reports that in the week after the SEC’s lawsuit, Binance’s market share in the United States fell by 78%, while trade volumes fell by 52%. Millions of dollars were allegedly moved around across CZ-owned entities in a “wash trading scheme,” according to the SEC’s lawsuit against CZ. The SEC claimed that Binance was an unlicensed securities exchange that was operating unlawfully in the US.
CZ said he thought going to court to address regulatory issues was “a bit unnecessary,” but that more communication with U.S. officials would improve how authorities dealt with Bitcoin.CZ stayed optimistic as he detailed how he hopes changes to the cryptocurrency regulatory landscape throughout the world will alleviate some of the market’s negative pressures.
Binance is being targeted by more than just the SEC. Commodities and Futures Trading Commission of the United States sued Binance on March 27 for violating trading and derivatives rules in the United States. The company is being looked at for potential violations of local regulations in Canada, Australia, and France.
Millions of dollars were allegedly moved around across CZ-owned entities in a “wash trading scheme,” according to the SEC’s lawsuit against CZ.The SEC claimed that Binance was an unlicensed securities exchange that was operating unlawfully in the US. The SEC’s lawsuit against CZ alleges that it participated in a “wash trading scheme,” in which millions of dollars were moved around among CZ-owned companies.
The SEC claimed that Binance was an unlicensed securities exchange that was operating unlawfully in the US.CZ said he thought going to court to address regulatory issues was “a bit unnecessary,” but that more communication with U.S. officials would improve how authorities dealt with Bitcoin.
At a Twitter Spaces event on Friday, CZ said that his company’s critics were trying to tarnish Binance by drawing comparisons to FTX, the failed cryptocurrency exchange created and maintained by CZ’s former rival Sam Bankman-Fried. Despite widespread fear, uncertainty, and doubt (FUD), CZ maintains that Binance has merely demonstrated its strength by maintaining its massive user base and market dominance.
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