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CZ States That US Traders Find “Intelligent” Ways To Bypass US Block

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Binance CEO Applauds Turkey For State-Owned Crypto Development
Binance CEO Applauds Turkey For State-Owned Crypto Development

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Changpeng “CZ” Zhao, the founder and CEO of Binance, has gone on record with a Bloomberg interview, stated that he needs to work harder to block the “intelligent” US traders from gaining illegal access to his global exchange.

Crafty Little US Traders

In his interview, CZ stated that his exchange needs to operate more intelligently regarding how it blocks the US traders from accessing the global platform. He highlighted that improving the way they block traders is a continuous process, but every now and then a few figure out how to bypass the block. As such, CZ stated that the Binance team then needs to develop smarter ways to protect itself through blocking these traders.

Binance stands as one of the largest crypto exchanges the world has to offer, and stopped operating within the US borders back in September of 2019.

The operation was halted thanks to regulatory risks, but Binance was quick to change tactics, launching Binance.US with BAM Trading services as a partner. BAM, in turn, has already been approved by the Financial Crimes Enforcement Network, allowing it to cater to US customers.

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The Needed Legal Affirmations

In his Bloomberg interview on Friday, CZ affirmed that Binance.US stands as a separate entity from the global Binance exchange. Instead, Binance.US licenses technologies from Binance, and receives branding support from the global exchange.

Binance.US holds only a sliver of volumes that Binance proper boasts, but there is a slight hiccup when it comes to that.

It’s a sad and common trend among large exchanges to inflate their volumes artificially to look better, thus not giving an accurate representation of trading activity. Binance stands as one of those firms that publicize fake, if technically true, trading volumes.

US And Crypto: A Complex Relationship

The US at large has been having a tough time when it comes to its legal approach to digital assets at large, failing to remain consistent overall. This, in turn, has resulted in crypto exchanges typically struggling to gain ground within the US, simply due to the massive uncertainty it holds.

A prime example would be the Commodity Futures Trading Commission (CFTC) that filed a civil enforcement action against BitMEX, a crypto derivatives exchange based in Seychelles. BitMEX doesn’t operate within the country, but the CFTC has accused it of operating an unregistered brokerage within US soil.

The US Department of Justice is pursuing the executive team of BitMEX, as well, charging them of facilitating money laundering. The exchange, not really having much choice, started to implement new trade surveillance and AML measures in a bid to keep the bad actors out.

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