Binance CEO denies using the crypto exchange’s US operations to skirt regulations

Binance CEO denies using the crypto exchange’s US operations to skirt regulations

A recent news report suggested the exchange had ulterior motives for opening a US office

Changpeng Zhao, CEO of Binance, denies that the crypto exchange used its US operations to avoid regulations. Forbes writer Michael Del Castillo said the news outlet has obtained a leaked presentation outlining Binance’s plans for operating in the United States, which states that in 2018 the crypto exchange intended to set up a “Tai Chi entity” in the US to protect its main operations from enforcement.

“While the then-unnamed entity set up operations in the United States to distract regulators with feigned interest in compliance, measures would be put in place to move revenue in the form of licensing fees and more to the parent company, Binance,” stated Castillo. “All the while, potential customers would be taught how to evade geographic restrictions while technological work-arounds were put in place.”

Binance CEO Changpeng Zhao, or CZ, disputed the claims, saying the document was “not produced by a Binance employee.” He added, “Binance has always operated within the boundaries of the law. We do not acknowledge the alleged document.”

Forbes described parallels between this Tai Chi plan purportedly conceived in 2018 and the trajectory of Binance US, which launched in September 2019, and which currently operates in 40 US states. Castillo said the document suggested the business entity participate in the US. CZ took to Twitter to say about the allegations, “Anyone can produce a ‘strategy document,’ but it does not mean Binance follows them.”

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