The Official Binance Blog Has Issued a Statement Defying the SEC.
The SEC charged Binance and its founder and CEO, Changpeng Zhao, with breaching US securities laws by operating unregistered exchanges, brokerages, and clearing houses; offering and selling unregistered securities; and mixing and diverting client funds to Zhao-owned third-party organizations.
Binance stated in a statement that it was “disappointed” that the SEC chose to bring a lawsuit over “productive” settlement talks. Binance stated that it is “actively collaborating” with the SEC’s investigations and is “working hard” to answer inquiries and address concerns.
Binance also indicated that the SEC “takes the allegations seriously,” but that no enforcement action should be taken. Binance chastised the SEC for its “misdirection and deliberate refusal” to provide clarification and guidance to the cryptocurrency industry, stating that it intends to “strongly defend its platform.”
The company said that the SEC is attempting to “unilaterally define” the crypto market structure by classifying certain tokens and services as securities, despite the fact that it claims jurisdiction over other US authorities. This strategy, according to Binance, is “not the best way forward” for a “effective regulatory framework” that promotes innovation and consumer protection.
Binance further stated that the SEC’s measures undercut America’s status as a global hub for financial innovation and leadership, and that the company is a “easy target” in the US’s regulatory dispute. He explained that the SEC appeared to be interested on “making headlines” rather than protecting investors.
Binance has informed its customers that their funds are “safe and secure” on Binance.com and Binance.US, adding that the SEC has “zero justification” for its move. Binance stated that it will continue to engage with authorities and policymakers in the United States and around the world, as well as with industry partners, to protect cryptocurrency technology against “misguided lawsuits.”