Binance's Response to SEC Charges: An In-Depth Look

In a blog post published on June 5, 2023, Binance, the world’s largest crypto asset trading platform, expressed disappointment in the U.S. Securities and Exchange Commission’s (SEC) decision to file a complaint against the company and its CEO (“CZ”). The company stated that it had actively cooperated with the SEC’s investigations and had worked diligently to answer their questions and address their concerns.

As CryptoGlobe reported earlier today, in a press release issued on June 5, 2023, the SEC announced that it had ” filed 13 charges against Binance Holdings Ltd., its U.S.-based affiliate BAM Trading Services Inc., and their founder, Changpeng Zhao.”

Binance revealed that it had engaged in extensive good-faith discussions to reach a negotiated settlement to resolve the SEC’s investigations. However, it says that the SEC abandoned this process and acted unilaterally, a decision that Binance finds disheartening.

While Binance takes the SEC’s allegations seriously, it believes they should not be the subject of an SEC enforcement action, especially on an emergency basis. The company intends to defend its platform vigorously. Binance views the SEC’s refusal to engage productively as another example of the Commission’s misguided refusal to provide much-needed clarity and guidance to the digital asset industry.

The company criticized the SEC’s approach of regulating with the blunt weapons of enforcement and litigation rather than a thoughtful, nuanced approach demanded by this dynamic and complex technology. Binance also expressed surprise at the SEC’s actions undermining America’s role as a global hub for financial innovation and leadership.

Binance firmly stated that any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong. It also mentions that all user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure, and the company will vigorously defend against any allegations to the contrary.

Binance went on to say it believes that the SEC’s real intent appears to be to make headlines rather than protect investors. It says it will continue to cooperate with regulators and policymakers in the U.S. and across the globe because it believes that is the right thing to do.

Featured Image: Photo by “Vadim Artyukhin” via Unsplash

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