Binance, Reuters, and CZ- demystifying the allegation air

ambcrypto.com:

A new story from Reuters was released on 17 October, where it was claimed that cryptocurrency exchange Binance had not been forthcoming with regulators in the United Kingdom and the United States.

A Reuters piece published earlier this year,  in June, speculated that, following the United States’ lead, Binance had not done enough to prevent criminal activity and fraudulent activity involving cryptocurrencies. 

According to a report by Reuters, on 11 March 2020, Binance strategy officer, Zoe Wei, proposed retroactively enforcing a service agreement covering a wide range of activities between Binance’s United Kingdom subsidiary and Binance’s Cayman Islands parent company.

After the new regulations were implemented on 10 January 2020, businesses existing before that date were excluded from registering with the country’s Financial Conduct Authority for a period of one year. This Reuters claimed Binance attempted to take advantage of it.

Further, in November 2018, it was claimed that businessman Harry Zhou, who is connected to Binance, proposed shifting the focus of enforcement efforts away from Binance and onto a U.S. entity.

According to Reuters’s account, Binance’s idea came about because the company realized that traders in the region were still using the primary platform after the restriction on U.S. customers went into effect.

The CEO of Binance, Changpeng Zhao (CZ), chimed in with a blog post in response. CZ elaborated on the company’s regulatory environment, saying that Binance’s market cap had grown tremendously in a short time. For this, there was no regulatory playbook on how to exactly go about it when a company scales overnight. 

The CEO also responded to media reports that the exchange was trying to evade regulators