Binance chiefs respond to CFTC probe
Bosses at under-fire Binance have spoken out over an announcement from the Commodity Futures Trading Commission (CFTC) that the agency is investigating the cryptocurrency exchange.
Earlier today, the CFTC revealed it would be examining if Binance had allowed the purchase and sale of derivatives by US residents – a grey area as Binance isn’t registered with the agency.
News of the probe caused the cryptocurrency markets to flash red across the board as prices briefly tumbled. Bitcoin – looking strong with potential for a challenge on $60,000 – dropped a wick down to $54,857 in the ensuing panic. Worst hit, naturally, was Binance’s own coin – BNB – which lost 16 per cent.
Bitcoin did recover better than most, and gradually returned above $57,500.
Returned fire
However, Binance chiefs have now returned fire over news of the CFTC investigation.
“As you can understand, we do not comment, as a matter of policy, on communications with any regulators,” a spokesman told City PM.
“What we can say is that we take a collaborative approach in working with regulators around the world and we take our compliance obligations very seriously.
“For example, we block US users at Binance.com and do this through KYC and a variety of KYC/AML tools and vendors including, but not limited to, Jumio, Onfido, WorldCheck, Elliptic, CipherTrace, etc.
“We also enforce geo-fencing detection to block US IPs, including common VPNs. Binance.US, a separate entity, is a FinCEN registered MSB, and it does, of course, service US users.”
In a coincidental twist, Binance CEO Changpeng Zhao (pictured) only yesterday announced he had appointed former US Senator and Ambassador to China Max Baucus to provide high-level guidance on efforts to build relations with US authorities and regulators.
The Binance spokesman added: “On top of KYC/AML and geofencing, Binance.com uses advanced techniques that go above and beyond regulatory standards and industry best practices, including blockchain analysis on deposits and withdrawals, mobile carrier info, device fingerprinting, and other proprietary technologies.”