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Binance Justification: An Open Letter to Changpeng Zhao

Against the background of regulatory problems of the casino exchange Binance, including problems with financial partners, Changpeng Zhao published an open letter in which he tried to talk about the company's plans to ensure compliance and customer protection, but in our opinion - it is an attempt to save customers, to deceive customers (the format of the business and the manner of running an illegal and unregulated casino - has not changed), and justify the criminal actions of Binance.



 

An open letter from Changpeng Zhao ("The Fox's Tale in the Hen House") is available on the official Binance casino website, in a blog called A Letter from Our CEO: Reflecting on Progress and the Road Ahead. Of course, it's worth turning to this fantastic story and commenting on some of his thoughts, which we will try to do, while expressing our thoughts. Not that Changpeng Zhao's thoughts are interesting, or interesting to listen about the progress of last four years, or current Binance regulatory environment - in 3 years we perfectly understand all this "progress on fooling users" and all this "regulatory" tales from Binance, we are interested in amount of deliberate lies and deception, once again, when regulators start pushing unregulated casinos from their countries and really try to protect their population from Binance scammers.

Excerpts from the Open Letter and our comments

When Binance launched four years ago, the crypto industry was still in its infancy - with few early adopters and no clear standards. In a short period of time, the crypto environment has grown and evolved dramatically: there are now more crypto offerings, a growing number of novice crypto users, and much more attention and discussion about how the crypto industry should move forward.

Our comment: When Binance was launched, literally from the start it was launched with deception about its past, about the real owners of the exchange, and literally immediately got investigated by the Chinese authorities. Maybe Binance changed vectors of development or a business model like CoinBase did. No. Binance was created as a casino, so it remains a casino, including all the lies, deception and fraud against users. In 2018 we lost 88,000 USDT because of Binance, all over the world people are losing money every day because of Binance "technical errors" - has anything changed? No. It's been 4 years since Binance started - no qualitative or quantitative changes in Binance, users are used as a cash cow, and are often satisfied with not just milk, but meat.

Protect the interests of users first

Before there were clear guidelines for the industry, we always held ourselves to the highest standards with respect to prioritizing the interests of our users-a goal we share with regulators around the world. So we've added requirements for the use of our platform and set industry standards: a strict insider trading policy (no active trading of any assets for 30 days), an emergency secured asset fund (SAFU) to protect user assets, strict listing standards and a firewall to separate the listing team. We have also invested in educational resources early on through tutorials and the Binance Academy to help users from all walks of life make informed decisions about crypto. For higher risk products, we set limits and protections to encourage responsible trading. Binance is currently the only crypto trading platform with a responsible trading program.

Our comment: High standards in Binance is any way to steal not only the user, take possession of his assets, but also to hide its real activity from the market (manipulation, artificial volumes in hundreds/thousands of times) and the authorities of this or that country/region. Binance does not share anything with the regulators all over the world, even in Australia, where with pathos and pomp they have launched supposedly regulated exchange Binance Australia - turned out to be a lie, deception and total lack of license and regulation. In no country in the world, Binance.com has no regulation or valid license for those services, which it provides, including the hidden services of Binance.

Strict standards? It's apparently artificial bot trading, artificial trading volumes, pumps and dumps of assets, BULL / BEAR token scams (UP/DOWN tokens), constant technical problems and lack of responsibility (which is exactly what Binance's agreement says - lack of any responsibility of the site to the user and their capital). We don't write about Binance manipulations, Changpeng Zhao manipulations, legal and financial fraud, commonplace asset theft and much more. These are not standards, this is criminal activity in its purest form. We also remember how Binance hides the most basic thing - the existence of its headquarters, how the Binance exchange hides its legal structure from regulators and users. Or let’s remember the story of how Binance delisted FTX credit tokens after significant user losses and then added their clones a month later.

SAFU - is a pretty name, nothing more than that, when you need to actually use SAFU, it doesn't happen. SAFU is not spelled out in the agreement with users, Binance explicitly states in the agreement - that it does not bear any responsibility for the actions of the platform, what SAFU can we talk about? Not a single problem with traders that Binance has ripped off has been solved through SAFU or in any other way, it hasn't been solved at all. The Binance Academy is not an investment in users, but a mechanism for "supposedly educating traders" to attract a customer to their casino, so they leave money there. Such educational programs, even those of real casinos abound, are not an achievement, but pure marketing. "To date, Binance is the only crypto trading platform" - the phrase is not correct, the correct phrase is "To date, Binance is not a crypto trading platform, but a casino under the guise of cryptocurrency trading." An advertising slogan that hides the entire criminal nature of the Binance parasite

Pumps and dumps of assets We also protect our users through our work with law enforcement agencies such as the Internal Revenue Service (IRS), the UK South East Regional Organised Crime Unit and many others to combat cybercrime, such as money laundering, terrorist financing and fraud. So far in 2021, we have already completed 5,600 investigative requests, 100% more than in 2020. Most recently, we supported the dismantling of a large group of cyber criminals responsible for laundering more than $500 million in losses from dark web transactions and high-profile cyber-attacks.

I believe the numerous decisions we have made to protect users' interests are the reason they chose to work with Binance, which has helped us grow rapidly over the past four years.

Our comment: This kind of cooperation, it's a necessary obligation, not an indicator of user protection. Money laundering, terrorism financing, and fraud are certainly criminal, but Binance's activities are just as much fraud and money laundering. Binance does everything to prolong their existence, it's easier to hand over other criminals to law enforcement than to make criminals of themselves (which they are). For example, the story of Cryptopia and btc-e (WEX) where Binance plays a major role is very interesting. The illegal banking and Forex activities of Binance are also criminal offenses, but apparently, the time will come when these organizations will give their press releases regarding criminal cases against Binance, as it is already happening in Thailand where the Securities and Exchange Commission of Thailand (SEC) has filed a lawsuit against Binance. So, helping law enforcement is one thing, but at the same time Binance is engaged in similar criminality and fraud, and on a much larger scale.


Clear rules are critical to continued growth

Four years later, we're seeing more widespread adoption of cryptocurrencies around the world and the need for clearer regulatory frameworks in different countries. Additional regulations are essentially positive signs that the industry is evolving, because it lays the groundwork for the broader population to feel secure in their participation in cryptography. I believe that a well-developed legal and regulatory framework will, in the long run, provide a solid foundation that will truly make cryptography important in everyone's daily life.

The introduction and development of cryptography has many parallels with the development of the automobile. When the automobile was first invented, there were no traffic laws, traffic lights, or even seat belts. Laws and guidelines were developed as cars moved along the road. It is the framework and laws we take for granted today that allow this powerful technology to be used widely and safely. Cryptography is similar in the sense that it can be accessible to all, but a framework is needed to prevent misuse and bad actors. Clarifying and developing the first set of standards is critical to the continued growth of the industry. And Binance wants to make a positive contribution.

Our commen: You have been watching for 4 years, but in all 4 years Binance has not received a single license to operate. Either you are blind or the reason is different. The industry is developing - yes, but you have remained an "unregulated and underground fraudulent casino" for all 4 years. No protection of Binance users interests, you even closed Support Center system and left the chat system - which is supposed to solve users problems. Binance.com exchange may not respond to any email sent (I saw it on my own example), what kind of development are we talking about? This is a casino, which was not affected by the development, without feedback and the possibility not only to solve problems, but sometimes just "make a complaint".

Binance is not a vehicle, it is the door to a room - where you will be robbed, stripped and kicked out, and there is no one to complain, jurisdiction is the Cayman Islands. Binance is an offshore pit, not a car, and not even a bicycle. When all cars drive on the road and follow all the rules of the road, Binance drives a secret trail in the woods knocking down animals and aborigines, from time to time changes cars, change colors, change license plates, but keeps driving secret trails through swamps and bushes, violating ALL laws in finance, cryptocurrency, criminal law. Reminds me of such a ride, a plot from a crime thriller, when the bandits robbed a bank and are hiding from prosecution by all means - this is our Binance casino in its purest form.

Binance is not contributing, Binance is robbing the crypto community and is a parasite in the crypto environment. The main income of this criminal community is not income from commissions, but income from criminal activity (described earlier, and to which the entire ScamBinance website is dedicated).

Looking to the future: making crypto secure and sustainable for all

As I said in late 2020, compliance is the way to go, especially in new sectors like crypto. There's still a lot of uncertainty in the industry. We also recognize that with growth comes more complexity and more responsibility.

As a four-year-old startup, Binance still has a lot of room for growth. Binance has grown very quickly, and we haven't always done everything right, but we are learning and improving every day. We hope to clarify and reaffirm our commitment to regulatory partnerships, and that we are actively hiring more talent and implementing more systems and processes to protect our users. Here are some tangible steps we are taking and will continue to take:

Our comment: Binance has zero liability, both legal and moral and any other. Challenges? Of course, it is difficult to change jurisdictions, hide from users and regulators, run unregulated activities even in developed countries, steal and suck money from users and keep afloat in such a wild format for 4 years. It's hard to position yourself as the #1 exchange in the world solely on artificial volumes and lies about the number of users. The life of a criminal, especially in an international format, is a complicated thing. There is no partnership with regulators and Binance and it seems to us - will not. That is why we are seeing one after another regulator around the world speaking out against Binance's criminal activity.


Growth of our international compliance team: Since last year, we have increased our international compliance team and advisory board by 500%. Notable appointments include former FATF Executive Secretary Rick McDonell and former head of the Canadian delegation to the FATF Jose Nadeau as compliance and regulatory advisors, as well as Max Baucus, former US Senator from Montana and US Ambassador to China, to provide high-level leadership-the first of many important additions to our team. We plan to double the size of our team by the end of the year, with qualified and experienced consultants to support us.

Our comment: Your team has not been in compliance or law enforcement in any country in the world in 4 years (never mind staffing). Apparently, it's not the size of the team, but the economy and politics of the business itself, which doesn't want to work honestly, and doesn't want regulation. For example, Binance will stop serving users in Ontario (Canada) - so why not, stop serving in all countries where you have no regulation or compliance, moreover - where you are banned, but continue your activity - China, Japan, USA and other countries? Binance hires prominent figures not for compliance, but for visibility and protection (lobbying) of their interests, let us say - a similar tactic in Colombian drug cartels, which "hire, bribe" officials (former or retired) to protect their criminal income and criminal business. In parallel, this is a nice step for the public for advertising and marketing purposes, nothing more.


Expanding our already strong compliance partnerships: We have implemented new control and regulatory technologies with partners such as CipherTrace to further protect our users. We are proud to say that we have conducted several external anti-money laundering (AML)-convincing proof of our ongoing AML controls and partnerships. We have recently collaborated through working groups and workshops with prominent anti-crime organizations such as the United Nations Office on Drugs and Crime (UNODC) and Interpol this year, and we look forward to further collaboration.

Our comment: Compliance is so excellent that investors have sued Binance collectively for tens of millions because of the outages on the futures platform, to the point that even the offshore jurisdiction (!) financial regulator of the Cayman Islands (CIMA) has initiated an investigation. This is just a benchmark compliance with all the rules and requirements, when no country in the world Binance.com has a license for financial services, neither for banking, nor for brokerage, nor for Forex services. If complied with all the requirements and regulated by financial governmental organizations - how to manipulate, cheat and rip off users? The United Nations Office on Drugs and Crime (UNODC) and Interpol are all fine and dandy, only we are talking about other things and looking at the true activities of their business, not the advertising slogans of Binance. Like all criminal organizations, Binance even has a charitable foundation, the Binance Charity Foundation, so what? To turn a blind eye to the losses and all the crimes committed by Binance, or all sign up in a religious sect Guangying Chen (Heina Chen) and Changpeng Zhao and pray to their images, all the property and capital to give to charity and to the clutches of fraudsters? I think not, and any sane person would agree with me.


Localizing our operations and business to comply with local regulations:

We strive to comply with relevant local regulations wherever we operate. In four years, we've grown from a startup to where we are today. That's a lot of growth in a short amount of time. Our commitment to compliance extends to how Binance is organized. For example, Binance.com is not available to U.S. users, whereas there is a brand partnership with Binance.USA, which is a fully independent organization that is a compliant and regulated exchange in the United States, to provide a safe, secure and compliant trading platform for U.S. users. For four years, we've seen regulators take a more active interest in the industry as a whole as it evolves. While we welcome this development, there is still much work to be done to harmonize the treatment of cryptocurrencies around the world. We look forward to continuing our efforts to work with regulators to address their concerns as the industry continues to grow.

Our comment: This is an extremely false statement in general, and nothing short of advertising. No country in the world has Binance complies with local regulations, even in the US there are questions and investigations by regulators. The situation is no better in Thailand, Singapore, Cayman, UK, Canada, Japan, Germany, South Korea, even Liechtenstein, China, Hong Kong, Malta, sadly also in Uganda, Malaysia, Brazil. Maybe Vipanse complies with local laws and regulations in Ukraine or Russia - also not. So what legalization and compliance with the rules are we even talking about? In all 4 years, Binance has not made a single step, not half a step towards compliance or legalization. 100% illegal and clandestine activity. We haven't forgotten how Binance ran away from China, ran away from Japan, ran away from Malta, ran away from Hong Kong, will soon run away from the Caymans Aren't we tired of running, when will Binance and its executives answer for their crimes? Binance welcomes nothing, Binance avoids any regulation and this Open Letter is a prime example of that. Regulators don't have problems, Binance's criminal business has problems - these are your problems which you have overloaded on the shoulders and backs of your users.


We know we are at a tipping point, as is the industry as a whole. These are just the first steps.

Our vision is to expand freedom and integration for a better human society. We firmly believe that our industry will benefit society by creating inclusive financial opportunities. We call it "freedom of money." That's why, in our first year as a company, we created the industry's first Binance Charity, which has invested $15 million in more than 20 projects for education, sustainability and other causes.

But this lofty vision will not be possible without the support and guidance of regulators and policymakers who understand that innovation has the most lasting sustainable impact when it is backed by a framework to protect all participants.

We humbly welcome more constructive guidance to help us grow better. 
We humbly welcome more capable talent and experienced consultants to join us in building better.

I and everyone at Binance are ready and eager to partner in the development and adherence to guidelines that will help the industry grow in a sustainable way. And together, we will help increase freedom in society in a sustainable and responsible way.


Our comment: Yes, this is just the beginning of a big purge, of that garbage, which like parasites succumbed to the cryptosphere. I would very much like to see the purge done in a general way and all parasites removed from the market, as it was in the Forex market in its time, especially in the third world countries. The industry itself may benefit society and freedom, but the Binance parasite will not benefit users, countries or the planet as a whole. The parasite model is one-way energy outflow, not energy exchange.

It's nice that the Binance Charity was remembered after all. How could they not, giving the criminal business the image of a charity is a favorite method of criminals of every scale and region of our planet. You can still kill people and build churches, hide behind God or hungry children in Africa, but don't forget to steal from their users and fill their pockets. Taxes? The Cayman Islands allow you to not even pay taxes to this or that country, a "wonderful contribution" to the future of the public parasite. Perhaps, 15 million U.S. dollars - it seems a large amount for an individual user, but it is important to understand that all the money that Binance has in one way or another received from the money of its users, and in 99% of cases - through fraud and deceit. What the regulators are doing now and is protecting the public, what Binance is doing and has been doing is hunting users and their assets, and maximum efforts are being made by Binance to make the user lose their assets at any cost.

Most of the guidelines have been created and present in the market for decades, and some for centuries - it's just a matter of enforcing them. What Binance has been unable and unwilling to do in all 4 years of existence. If Binance is waiting for some other guidelines, then the time of the Wild West is over - there is legislation that needs to be enforced. Waiting to be able to enforce it instead of actually doing it and complying with it is within Binance's business policy. Together, Binance and users will not, different goals - it is difficult to call one organism a host and its parasite, the host lives and the parasite feeds on the host, Binance and is a parasite on the body of the cryptosphere and the cryptocommunity.


Conclusion: "The Fox's Tale in the Hen House" by Changpeng Zhao (or rather, its marketing department) is pure advertising. If they wanted to comply and conform to the principles, rules and laws, so would the investigators. But this is not the case, as we can see from the statements of the regulators. Everything else, deceit, hypocrisy, lies and advertising populism. No steps towards an honest and regulated business, no repentance and recognition of fraud, Binance business will continue to develop as an illegal and illegal casino under the guise of "crypto" slogans.

We are sorry for the time spent reading "The Fox's Tale in the Hen House" by Changpeng Zhao and sorry for the time spent analyzing this false nonsense.шаблоны для dle 11.2
08.07 00:23