The CFTC filed an unexpected and troubling civil complaint even though we have been cooperating with the CFTC for over two years.

Upon initial review, it turns out that the complaint contains an incomplete statement of facts, and we do not agree with the interpretation of many of the issues stated in the complaint. We will give a full answer to it, but now let's look at a few key points.

Technology for compliance and blocking in the US.

Binance.com has developed best-in-class technology to meet regulatory compliance requirements. Binance.com was the first global (non-US) exchange to implement a mandatory KYC program, and to this day has some of the highest standards in KYC and AML. We block US users by nationality (KYC), by IP (including widely used VPN points outside the US), by mobile operator, by mobile device trace, by bank deposits and withdrawals, by blockchain deposits and withdrawals, and so on. same by credit card numbers and many other parameters.

We don't know of any company that uses more comprehensive or more efficient systems than Binance.

Transparency and cooperation with law enforcement agencies.

Binance is committed to transparency and cooperation with regulators and law enforcement in the US and around the world. Currently, the Binance team has over 750 employees who have experience working in law enforcement and regulatory agencies. To date, we have processed 55,000+ law enforcement requests and have helped US authorities freeze/seize over $125 million in funds in 2022 alone and $160 million in 2023.

We intend to continue to respect and cooperate with US and other regulators around the world.

Registrations and licenses.

Binance.com has the largest number of licenses/registrations in the world, with 16 or more, and is highly respected by our user community.

Trade.

Binance.com does not trade for profit or "manipulate" the market under any circumstances. Binance "trades" in several situations. Our income comes in cryptocurrency. From time to time we need to convert them to fiat or other cryptocurrencies to cover expenses. We have partners who provide liquidity for less liquid pairs. These partners are specially screened to ensure that they do not have large profits.

Personally, I have two accounts on Binance: one for the Binance Card, the other for my cryptocurrency assets. I use our services myself and store my cryptocurrencies on Binance.com. I also need to convert cryptocurrency from time to time to pay for personal expenses or use a card.

Binance.com has a 90-day no-trading rule for employees, meaning you are not allowed to sell a coin within 90 days of your last purchase, and vice versa. This is done to prevent employees from actively trading. We also prohibit our employees from trading futures. In addition, we have strict rules for those who have access to private information such as listing details, Launchpad, etc. They are not allowed to buy or sell these coins.

I myself strictly follow these rules. I have also never participated in Binance Launchpad, Earn, Margin or Futures. I know the best use of my time is building a robust platform that serves our users.

At Binance, we seek peaceful solutions to all problems. We work with regulators and government agencies around the world. While we are not perfect, we are held to high standards, often higher than current regulations require. Above all, we believe in always doing right by our users. On this journey to money freedom, we don't expect things to be easy. We do not avoid difficulties.

We thank you for your continued support!

 

CZ

CEO Binance