New allegations arise regarding Binance’s regulatory framework

A new report by Reuters published on Oct. 17 alleging that Binance, a cryptocurrency exchange, “failed to be subjected to scrutiny” by regulators in the United Kingdom as well as the United States. Two incidents from its operation history are the main source of these allegations.

Reuters first reported on Zoe Wei, Binance strategy executive,’s proposal to backdate a service contract relating to different operations between Binance’s U.K. unit (Binance) and Binance’s Cayman Islands-based holding company (Reuters), March 11, 2020. This move allowed Binance to be exempted from registration with the country’s Financial Conduct Authority for a year. Any firm that operated before January 10, 2020 could do so.

Second, Reuters reported Harry Zhou, a Binance-affiliated entrepreneur presented a November 2018 proposal that would allegedly direct enforcement attention towards a U.S. entity, instead of Binance. Reuters claimed that the proposal was born because Binance knew that traders continued to use the main platform despite the ban on U.S. users (due to financial crimes laws)

Hours later, Binance’s CEO Changpeng Zhao (CZ) posted a rebuttal against the Reuters report. CZ addressed specifically the claims surrounding the U.S. entity in the article.

“This is the story of the so-called Tai-Chi [defensive actions] PowerPoint. It was submitted by an outside consultant as a suggestion for how to start a business in America. It was never implemented, let me repeat that again. It was rejected by me personally.

CZ spoke out about Binance’s regulatory framework. He explained that Binance has seen its market capital “multiply exponentially” in a short time span and that there is no manual that can show how to pivot from a small start up to a Fortune 100 company. CZ said, “But we are learning fast,” and pointed out that Binance was the first major exchange to allow KYC users outside the U.S. Reuter’s claims of the U.K. conduct by the crypto executive were not addressed by the executive.

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Jason Basler

Jason Basler– Financial Updates My Name is Jason Basler and I am also the main source from the ‘Topnewsscoop.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor. Address: 4830 Crim Lane Dayton, OH 45402, United States of America Phone Number:  +1 937 727 7917 Email: [email protected]

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