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Changpeng Zhao will not hold any legal title or play any operational role in Binance US

Priya

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Binance.com and Changeng Zhao will not play a role in the new venture, Binance US
Source: Unsplash


Changpeng Zhao, Co-founder and CEO of one of the world’s largest cryptocurrency exchanges, addressed major concerns regarding their new platform, Binance US, in a recent AMA. The exchange recently announced the launch of an exchange platform that would be dedicated solely to US customers. Additionally, it also stated that US users would not be able to avail the services provided by Binance.com, from around mid-September.

During the AMA, CZ was asked whether he would oversee the operations and functions of Binance US, or whether it would be fully managed and run by BAM Trading Services, the platform the exchange announced a partnership with for its US venture. To this, CZ stated that Binance US will be run by BAM Trading Services, adding that they would have complete control over the US exchange. He also clarified that he doesn’t have any legal title or an operational role in the US exchange venture. However, CZ conceded to having “some influence” on the exchange.

He stated,

“Binance.com provides technology for the platform. So, basically, that platform will have the same technology and wallet management services that Binance.com users. So, you will be using the same technology, same users experience, but it will not be managed by [me]. I do not have a role in there and it’s not run by Binance.com as well.”

Further, CZ spoke about the launch of the platform. He stated that he is expecting the platform to be launched in three months, adding that Binance has been working alongside BAM to meet this deadline. Nevertheless, CZ mentioned that there was “some uncertainty” as well, with regards to the launch, stating that they “don’t control everything.”

When asked about whether SAFU funds would apply to American users, CZ stated that it would not cover those customers. Secure Asset Fund for Users [SAFU], an emergency insurance fund, was introduced by Binance in 2018, under which the exchange assigns 10 percent of its trading fees to the SAFU Fund, in order to protect users “in extreme cases.” These funds are stored in a separate cold storage wallets. CZ added,

[…] So, Binance SAFU fund will not apply to Binance.US. But it’s totally possible for Binance US to set up their own SAFU fund, once its up and running […]

This was followed by the CEO talking about the coins that would be available for US customers on the new platform. CZ responded by saying that the list of cryptocurrencies that would be listed on the exchange platform was not decided yet, adding that it would be released on the official US website as soon as the official list was confirmed.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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