Binance to Mount a Vigorous Defence in SEC Case

In response to a suit by the SEC, the Binance bitcoin exchange issued a statement, in which it noted its readiness to vigorously resist regulator pressure.

The company stressed that it is cooperating with the Commission toward a pre-trial resolution. However, according to representatives of the platform, the SEC’s main aim is to “unilaterally define the crypto market structure”.

“The Commission has chosen to regulate with the blunt instrument of enforcement and litigation, rather than the thoughtful, detailed approach this dynamic and complex technology requires,” Binance said.

The exchange also rejected claims that customer funds were at risk, assuring customers that assets are stored securely.

Moreover, Binance regards the SEC’s actions as “limited” since the company is not based in the United States.

On June 5, 2023, the SEC filed a suit against the bitcoin exchange and its CEO Changpeng Zhao. The regulator brought 13 charges, including selling unregistered securities. The suit also alleged that Binance had failed to register its platform as an exchange, broker-dealer or clearing agency, as well as its U.S. unit.

Earlier in March, the CFTC filed against the exchange and Zhao. The agency contends that Binance violated derivatives trading rules by operating without proper registration and “willfully evading U.S. law.”

In response to the accusations Zhao stated that the Commission’s allegations contain an “incomplete portrayal of the facts,” and that his company does not agree with many of the points.