Binance CEO Changpheng Zhao is dismissing the fear and uncertainty surrounding reports that the Commodity Futures Trading Commissions (CFTC) has launched an investigation against the global cryptocurrency exchange.
Bloomberg cites sources close to the matter who say that the CFTC is looking at whether Binance allowed Americans to buy and sell derivatives that may be in violation of US regulations. Bloomberg highlights that the investigation may not necessarily result in an enforcement action.
In a new tweet, Zhao tells his 1.1 million followers that he is not too concerned about the CFTC probe.
“It’s not a bull market without some FUD (fear, uncertainty, and doubt). Ignore FUD, keep BUIDLing.”
The Binance executive also cites part of a report which emphasizes that currently, the CFTC investigation poses no substantial threat to the global cryptocurrency exchange.
When you know it is FUD. pic.twitter.com/Phgs53mp9l
— CZ 🔶 Binance (@cz_binance) March 12, 2021
In addition, Zhao tweets a Bloomberg interview that features Max Baucus, Binance’s government relations advisor and the former U.S. ambassador to China, who says that the CFTC is just doing its due diligence as the broader crypto market is in the midst of a strong bull market.
“The CFTC is doing its job as it should. The U.S. Securities and Exchange Commission (SEC) is looking into crypto. Treasury is developing regulations. This is such a new phenomenon. It’s only appropriate that the regulatory agencies do their job.
I can’t state whether or not the CFTC is investigating Binance. That’s not for me to say. But I do know that they’re looking at, not investigating, looking at a lot of other exchanges because it’s the right thing to do. Binance has not been charged with any wrongdoing. It’s just part of the general effort of the CFTC to figure out what’s going on because it’s really explosive.”
As the reports surfaced, Binance Coin (BNB) dropped to a low of $253.95 from a high of $287.58, representing a drop of over 11% within 24 hours. BNB is currently trading at $258.42, according to CoinMarketCap.
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