Binance calls CFTC charges ‘unexpected,’ says it will cooperate with regulators

Binance responded to the allegations filed by the Commodity Futures Trading Commission (CFTC) in a statement provided to CryptoSlate on March 27.

Binance Comments on CFTC Billing

A Binance spokesperson called the CFTC accusations “unexpected and disappointing,” and said that Binance has been working with regulators for more than two years.

Its spokesperson said Binance will block all US residents and US citizens living abroad, blocking US mobile phones, IP addresses and credit cards. They also said that Binance imposes mandatory her KYC (know-your-customer) checks for all customers worldwide.

These statements appear to refute the charges filed by the CFTC on March 27. In these allegations, the CFTC alleged that Binance “solicited and accepted orders” and offered US individuals other investment products.

However, the CFTC also made more specific claims against Binance. The regulator said the exchange and its executives deliberately circumvented regulations, sometimes not imposing background checks and telling customers how to circumvent compliance controls. In other words, Binance has not adequately addressed the details of the regulator’s claims.

The CFTC further said that Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC), the virtual currencies offered by Binance, are commodities.

Binance says it will work with all regulators

Binance said it intends to continue working with U.S. and global regulators despite the lack of U.S. services. The company said it expanded its compliance team to more than 750 members of his and spent an additional $80 million on compliance partnerships.

Binance has already built a global presence. Binance does not serve US customers directly, but its independent partner, his Binance.US, has been since 2019. However, Binance.US itself has come under fire for its possible involvement in regulatory evasion and its apparent ties to companies controlled by Binance CEO Changpeng Zhao.

The exchange also operates elsewhere, serving 140 countries as of December 2022 and securing 14 licenses in Africa, Europe and Asia-Pacific countries.