On Monday, the CEO of Binance, Changpeng Zhao, responded to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) against the crypto exchange. The complaint alleged that Binance had violated U.S. commodity-trading laws, prompting the exchange to issue a statement denying the allegations.
In his statement, Zhao expressed disappointment at the CFTC’s actions, saying that the exchange had worked cooperatively with the agency for over two years. He also claimed that the complaint was based on an incomplete recitation of facts, and that Binance did not agree with the issues raised in the complaint.
The CFTC’s action against Binance is the latest in a series of regulatory challenges faced by the crypto industry in recent months. The collapse of crypto exchange FTX in November 2022 and a regulatory warning issued to Coinbase by the U.S. Securities and Exchange Commission last week have intensified scrutiny on the industry.
Zhao emphasized that Binance is committed to transparency and cooperation with regulators and law enforcement agencies, and that it holds the highest number of licenses and registrations globally. He also denied allegations that the exchange trades for profit or manipulates the market.
Zhao revealed that he personally holds two accounts at Binance, one for his crypto holdings and one for the Binance Card. He stated that he stores his crypto on Binance.com and occasionally converts crypto to pay for personal expenses or for the Card.
He added that Binance works with regulators and government agencies around the world, and that the exchange would release a full response to the CFTC’s complaint in due time.
Following the news of the CFTC’s complaint, Bitcoin experienced a drop of 3.34% on Monday, falling to a 10-day low of $26,544, according to CoinDesk data. As of writing, Bitcoin is trading at $27,003, down 2.48% in the past 24 hours.
Overall, Zhao’s statement emphasized Binance’s commitment to transparency and cooperation with regulators, and the exchange’s denial of the CFTC’s allegations. The statement also highlights the increased regulatory scrutiny faced by the crypto industry in recent months.