world’s largest cryptocurrency exchange Binance released a defiant statement Monday in response to a lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
A Statement Defying the SEC Has Been Released From The Official Binance Blog
The SEC accused Binance and its founder and CEO, Changpeng Zhao, in violating US securities laws by operating unregistered exchanges, brokerages, and clearing houses; offering and selling unregistered securities; and mixing and diverting client funds to a third-party organization owned by Zhao.
Binance said in a statement that it was “disappointed” that the SEC preferred to file a lawsuit over “productive” talks to reach a settlement. Binance stated that it is “actively collaborating” with the SEC’s investigations and is “working hard” to answer their questions and address their concerns.
Binance also stated that the SEC “takes the allegations seriously”, but denied that they should be the subject of an enforcement action. Binance criticized the SEC for its “misdirection and deliberate refusal” to provide clarity and guidance to the crypto industry, noting that it aims to “strongly defend its platform.”
The company argued that the SEC is trying to “unilaterally define” the crypto market structure by labeling certain tokens and services as securities, even if it has claimed jurisdiction over other US authorities. Binance stated that this approach is “not the best way forward” for an “effective regulatory framework” that encourages innovation and consumer protection.
Binance also said that the SEC’s actions undermine America’s role as a global hub for financial innovation and leadership, and that Binance is an “easy target” amid the US’s contention with regulators. He explained that the SEC’s goal appears to be “making headlines”, not protecting investors.
Binance has assured its clients that their assets on Binance.com and Binance.US are “safe and secure” and that the SEC has “zero justification” for its action. Binance said it will continue to collaborate with regulators and policymakers in the US and around the world, and will work with industry partners to protect crypto technology from “misguided lawsuits.”
*Not investment advice.
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