Binance Has Developed A Plan To Bypass US Regulators
Binance US CEO Katherine Cole Denies Exchange Is Using Tai Chi Strategy
Binance US: Regulators Slow Cryptocurrency Adoption
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The largest cryptocurrency exchange Binance has developed an entire bypass plan to bypass the requirements of US regulatory and regulatory authorities. A leaked Tai Chi document reveals exactly how Binance intends to circumvent US law.
Give in and Win: Binance’s New US Strategy
One of the slides of the presentation, which was named “Tai Chi”, was at the disposal of Forbes journalists. It clearly shows how the cryptocurrency exchange is going to bypass the requirements of regulatory and supervisory authorities in the United States. By the way, it is worth noting that the strategy is based on the principle of the Chinese martial art Tai Chi, whose name literally translates as “give in and win”. This is the tactic that Binance US employees are encouraged to use..
“While an organization has established operations in the United States to distract regulators with a feigned interest in compliance, licensing fees and other revenues will be transferred to parent company Binance. At the same time, potential customers will be taught how to circumvent geographic restrictions using technical means, ”writes Forbes..
Slide from Tai Chi strategy presentation
As reported by Forbes, Binance’s strategic plan has 4 goals. The first and foremost objective is regulatory mitigation and is designed to minimize the impact of US law. It explicitly mentions the need to undermine the ability to “combat money laundering and US sanctions” and to detect illegal activity.
Specifically, it describes a detailed strategy to divert the attention of the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury and Foreign Assets Control (OFAC), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC)) and the New York City Department of Financial Services (NYDFS). To do this, the document proposes to participate in the US Department of Homeland Security (DHS) Cornerstone program to identify weaknesses in financial systems..
A secret source told Forbes that Binance US did participate in the Cornerstone program, but later withdrew..
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Also, Binance’s corporate governance structure is designed to avoid regulatory risks. To do this, all key personnel must work outside the United States. At the same time, another company called Delaware C Corp will operate in the United States, which should be ready to “accept nominal fines in exchange for a delay in execution,” writes Forbes. In fact, all income generated from the activities of this company will be directed to Binance.
Part of a leaked document titled “Regulatory Engagement Plans” shows that Binance.US is expected to attract the Securities and Exchange Commission, the Commodity Futures Trading Commission and the NYC Department of Financial Services, but importantly, it explicitly notes that he does not expect approval from any of them, repeatedly using the phrase “no hope of success”.
In other words, the creator of the document, which might be Harry Zhou, a former exchange employee, offers a clever scheme to bypass the bans and restrictions for cryptocurrency exchanges in America. Changpeng Zhao, CEO and founder of the exchange, did not comment on this document to Forbes reporters..
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Binance denies everything
But Binance US CEO Catherine Coley wrote down a personal appeal to users after the publication of an article in Forbes, in which she stated that “Binance complies with absolutely all the requirements of American law, and the submitted document was created back in 2018, when there was no clear regulation of turnover in the world. cryptocurrencies and the work of cryptocurrency organizations “.
Binance users supported Katherine Cole’s speech and expressed gratitude for clarifying the situation with the Tai Chi strategy.
US regulators hinder cryptocurrency
Despite the fact that the head of Binance US claims that the exchange complies with all the requirements of American regulatory bodies, the adoption of cryptocurrencies is slowing down precisely because of the excessive regulation of the market..
The issue of user identification and the introduction of control over the circulation of cryptocurrencies at the protocol level can threaten freedoms and equality in the crypto community. This opinion was expressed by the head of the American division of the cryptocurrency exchange Binance.US Catherine Coley in an interview on Charlie Shrem’s podcast.
Even though cryptocurrency giants like bitcoin are no longer popular on the darknet, government regulators tend to see excessive financial freedom as a threat..
Koli noted that despite the potential of the technology, bitcoin is still only available to people with Internet access..
“Already in this case, we are leaving a large number of people behind board,” said Koli.
Regulated exchanges are also required to ensure that their users have gone through the KYC standard, and for this, in some countries, you must have at least a bank account.
Kohli believes that the excessive requirements for users and exchanges imposed by the US authorities slow down the adoption of cryptocurrency in the country.
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