Binance CEO CZ reveals copy of letter to US Senators – weeks before CFTC lawsuit

Binance released a transcript of a missive sent to U.S. senators connected March 16 detailing its transparency efforts, acquisition with regulators, and challenges of dealing with government.

Company CEO Changpeng Zhao (CZ) said the missive was sent to Senators Warren, Van Hollen, and Marshall and contained “lots of details.”

Earlier this month, Senators Warren, Van Hollen, and Marshall led a bipartisan telephone for Binance to reply questions astir its finances, hazard absorption practices, and regulatory compliance. The missive stated that the FTX ungraded justified a person look astatine crypto transparency and accountability.

“Binance and its related entities person purposefully evaded regulators, moved assets to criminals and sanctions evaders, and hidden basal fiscal accusation from its customers and the public.”

Binance responds

The March 16 missive — responding to the Senators — elaborate accusation connected the company’s compliance program, sanctions compliance, and practice and collaboration with instrumentality enforcement.

Binance said it was the archetypal large non-U.S. speech to instrumentality a mandatory Know-Your-Customer (KYC) process for each users. Furthermore, the compliance squad comprises implicit 750 staff, including specialists with anterior instrumentality enforcement and regulatory bureau experience.

In respect of sanctions compliance, the institution pointed retired its adherence to the authorisation laws of respective jurisdictions — including those of the U.S. Furthermore, processes are successful spot to forestall entree by sanctioned users, including IP blocks against OFAC-sanctioned countries and the usage of “advanced third-party tools” to surface and show users.

To date, the institution has received 55,000 requests from instrumentality enforcement for help, and responses are usually sent wrong 3 days. Binance said its efforts successful this country person led to the takedown and impediment of transgression enterprises.

Binance sued by CFTC

On March 27, the Commodities Futures Trading Commission (CFTC) sued Binance connected allegations of commodities instrumentality violations.

The filing contained aggregate accusations that included nonaccomplishment to registry with the regulator, “soliciting” U.S. users, and comments connected its opaque institution structure.

The station Binance CEO CZ reveals transcript of missive to US Senators – weeks earlier CFTC lawsuit appeared archetypal connected CryptoSlate.