The US Commodity, Futures Trading commission is investigating whether Binance allowed US Citizens to trade crypto-currencies on their exchange in a way that violated the country rules. The crypto currency exchanged has not yet been accused of misconduct. Co-founder Changpeng Zhao addressed the story in an online discussion, saying Binance has strong controls to prevent illicit transactions.
Going forward to make sure they remain in line, Binance is trying to build a strong relationship with US authorities and regulators. In line with these thoughts, they have tapped Max Baucus, a former Senator and ambassador to China as a policy adviser. Baucus will give “guidance on the organization’s government and regulatory efforts including building strong relations with U.S. authorities and regulators, he’ll focus on policy advice for global financial jurisdictions and liaise with U.S. officials.” Binance said in a statement.
According to Baucus, one of the measures Binance Holdings Ltd is considering is whether to register as a broker with the CFTC. “I think they’re moving in that direction,” Baucus said in a Bloomberg Television interview Friday when asked whether the company plans to register as a broker with the Commodity Futures Trading Commission. “That’s a policy decision that we’re discussing, and it’s a business judgment.”
Victor Nnadi is an Independent Economics Researcher and a Securities Trader.
