Notably, seems that Binance has been prepared for the investigation. The exchange has spent tens of millions of dollars hiring the best cyber forensics team in the world.
By Darya Rudz
Updated
3 mins read
Changpeng “CZ” Zhao, the founder and CEO of Binance, has said that the US Securities and Exchange Commission (SEC) has been “asking questions” about BNB, the native token of the exchange. As we have reported earlier this month, the regulator is now investigating if BNB was security at its initial coin offering in July 2017. Binance has not yet been subpoenaed but is constantly in contact with the authorities regarding the case.
During CoinDesk’s Consensus 2022, Changpeng Zhao said:
“We do communicate with every single regulator in the US, and also globally. … I don’t know what the media knows or not, but we have been collaborating with regulatory bodies and regulatory agencies very fully. And we strongly believe that BNB is not a security, we have strong legal opinions on that, so I don’t think that’s a risk for us.”
Earlier, SEC started investigating whether BNB was security at ICO back in July 2017. The regulator has not reached any conclusion yet. Besides, the SEC is watching Binance US arm, Binance.US, in order to ensure that the US business is appropriately operating independently from the crypto company. Furthermore, Binance is also under investigation in the US by the Justice Department, the Commodity Futures Trading Commission (CFTC) and the Internal Revenue Service.
Notably, seems that Binance has been prepared for the investigation. The exchange has spent tens of millions of dollars hiring the best cyber forensics team in the world.
Closing the Consensus 2022 conference, Binance CEO has also shared his thoughts on crypto regulation in general. According to Changpeng Zhao, the industry is still in its early stage, therefore, failures are common.
“There’s no way to prevent failures in a new industry. The only way to prevent this is to do nothing and not innovate. Many of the models may work or not work that well, but the technology is here and has such potential. But there may be people who just won’t see that,” said he.
Further, Zhao noted that the industry should “self-regulate” to some extent:
“Some degree of regulation is necessary, but the industry also has the capacity to self-regulate in certain areas.”
According to Zhao, regulators should take a relaxed approach toward crypto and see how the industry is growing. Currently, this kind of approach is taken in Germany, Singapore, Switzerland, and more. These countries are the most crypto-friendly ones, as they are integrating blockchain in a compliant and safe way.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.
