Binance CEO Changpeng Zhao (CZ) responded to Reuters allegations about regulatory compliance. The CEO also lashed out at the journalist for claiming they would report on their children.
Binance and Binance USA
Changpeng Zhao (CZ) spoke to a Reuters journalist today about some of his allegations about the stock market in the past months. The executive said the reporter wrote several articles about the stock market based on anonymous sources. He also noted that they had recently crossed into “vulnerable territory” through interrogation lines.
“How Binance CEO and his aides planned to circumvent regulators in the US and UK.” His most recent article, titled The article claims that Binance is trying to ‘escape’ itself from regulators like the SEC. He also claimed that his CEO is both ‘attached to privacy’ and ‘attentive to minor operational details’.
In his reply, Changpeng Zhao referred to a public document on some of the principles he followed. To that extent, he denied the implication that he was a ‘bully’ or a ‘secret’ leader. He also talked about the allegations about the “Tai-Chi Powerpoint”, a plan for how Binance will be established as a US entity.
According to Reuters, the proposal put forward by an entrepreneur named Harry Zhou suggested that Binance set up a separate US entity that complies with the Bank Secrecy Act. The organization will have less features and liquidity on its surface than Binance’s main exchange. However, US customers will have the opportunity to access the latter using virtual private networks (VPN). Thus, by taking advantage of an ‘openness’, they will be able to overcome regulatory barriers. Still, according to CZ, Binance never followed the plan. Binance CEO made the following statement on the subject:
I personally refused. The entire PowerPoint is only seven slides long. It lacks any direction to act on. Also, she looks like a 5th grader putting it together.
Changpeng Zhao said they founded Binance USA on the advice of US law firms. He also added that contrary to the claims in the article, it is still a separate entity from Binance.com.
“Now they have crossed the line”
CZ said that while Binance normally answers questions from journalists, it prefers not to respond to requests for comment for the latest Reuters article. According to her, the reporter signaled an intent to discuss her children. On this subject, CZ used the following statements:
We did not receive assurances that this Reuters reporter would refrain from writing about my family. So we took the unusual step of not responding directly to them once again. Instead, we bring the story directly to the community.
As you follow on Kriptokoin.com, Changpeng Zhao published a similar blog post in September against media claims that Binance is a Chinese company. Meanwhile, earlier this month, Binance received a license to provide crypto services in Kazakhstan.
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