Regulatory action intensifies, Binance asserts ‘zero tolerance’ for insider trading
United States authorities have been probing possible insider trading and market manipulation at Binance, and examining whether Binance or its staff members profited by taking advantage of its customers. However, as per Binance, it has a “zero-tolerance policy for insider trading,” in place. In a statement to the media, the largest cryptocurrency exchange noted,
“At Binance, we have a zero-tolerance policy for insider trading and a strict ethical code related to any type of behavior that could have a negative impact on our customers or industry.”
In the wake of intensifying regulatory crackdown, Binance discussed its centralized business structure, realizing the need to have a central entity to work with the regulators. The CEO of Binance noted in a recent interview,
“As we run a centralised exchange, we have come to realise that we need to have a centralised entity to work well with regulators. We need to have clear records of stakeholders’ ownership, transparency and risk controls.”
Recently, the exchange has been at the receiving end of several warnings from different countries around the world. It had to curb its business in Britain, Germany, and Japan over concerns of money laundering and customer risks. Binance also had to scale back its product offerings to improve relationships with regulators.
Notably, Binance was still leading in terms of trading volume as data suggested the exchange’s dominance in the spot monthly volume, topping $751 billion. It outperformed competitors like OKEx, Huobi, Coinbase, and others. Meanwhile, in the light of the current events, the CEO communicated with his followers, a single statement,
“Don’t get distracted by noise.”