Changpeng Zhao (CZ), the CEO of Binance, the world’s largest cryptocurrency exchange, recently tweeted to remind employees, including himself, that trading in the cryptocurrency futures market is prohibited. This rule was initially mentioned in a letter published by CZ after the lawsuit filed by the CFTC.
“Zero Tolerance” from Binance
CZ, the CEO of the major cryptocurrency exchange Binance, reiterated the company’s internal rule regarding employees trading in the cryptocurrency futures market in response to allegations. CZ stated that trading in cryptocurrency futures is prohibited for Binance employees, including himself.
Chinese Blockchain journalist Colin Wu drew attention to CZ’s statement, highlighting that the company’s internal rules include a 90-day restriction on daily trading for employees. According to this rule, the internal security team of the cryptocurrency exchange monitors the potential trades of employees in multiple cryptocurrency exchanges. Wu added that Binance does not tolerate violations of this rule and termination is implemented if any violations are detected.
The Rule Was Initially Mentioned in a Publicly Released Letter After the CFTC Lawsuit
CZ published a public letter in late March, addressing the allegations raised by the US regulatory agency, CFTC, after the lawsuit against Binance. In the letter, CZ emphasized various rules, including the legal requirement for Binance employees to refrain from daily trading for 90 days.
In the letter, CZ stated, “Binance.com has a rule that employees cannot engage in daily trading for a period of 90 days. This means that you are not allowed to sell a coin or do the opposite within 90 days after your last purchase transaction. The purpose is to prevent all employees from actively trading. Furthermore, our employees are also prohibited from trading in the futures markets. Moreover, we have strict policies for individuals who have access to listing information, such as Binance Launchpad. These individuals are not allowed to buy or sell those coins.”
CZ, who said, “I strictly adhere to these policies,” also added, “I have never participated in Binance Launchpad, Launchpool, Margin, or futures. I dedicate my time to creating a solid platform that provides the best service to our users.”
