Media released news that the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and Binance founder and CEO Changpeng Zhao (CZ) for violating regulatory provisions. In response, a Binance spokesperson said that the prosecution was unexpected and disappointing because Binance has been working with the CFTC for more than two years. Binance still intends to continue to work with regulators in the United States and around the world to protect users and develop a clear and comprehensive regulatory system.
A Binance spokesperson pointed out that a lot of resources have been invested in the past two years to ensure that there are no US users on the platform, and the compliance team has expanded from about 100 people to about 750 core and supporting compliance personnel today, of which nearly 80 have experience in law enforcement or regulatory agencies and about 260 have compliance professional certificates.
In addition, Binance has invested an additional $80 million in external partners, including KYC providers, transaction monitoring, market observation and investigation tools to support compliance programs. Binance has also taken a variety of measures to manage risks and compliance, including but not limited to:
Mandatory KYC certification for all users worldwide
Blocks US residents from accessing the platform
Blocking access to the platform for anyone identified as a U.S. citizen, regardless of where they live in the world
Block devices using services from US telecom service providers
Block IP addresses from the United States
Prevent deposits and withdrawals using Bank of America credit cards