The Crypto Exchange Landscape
Ever since the spectacular downfall of FTX, Binance has found itself thrust into the spotlight—both adored by some and scrutinized by others. Next to Changpeng “CZ” Zhao, the company’s founder, sitting in a corner with a magnifying glass on him, the stakes couldn’t be higher.
New Employee Trading Policy
On January 10, a tweet stirred the pot, claiming that Binance is implementing a shrewd policy to deter insider trading. The policy apparently states that all employees, regardless of rank, must keep their cryptocurrency positions for a minimum of 90 days. In other words, get comfy—it’s not a quick game.
Binance Responds
Cointelegraph didn’t just let this tweet float by without confirmation. Reaching out to Binance, they learned that the company is pretty serious about its insider trading policies. A spokesperson stated, “We have a zero-tolerance policy for using insider information for profit, both by employees and their relevant family members.” Seems like the whole family is on the no-trade list!
Accountability Measures
In an admirable show of determination, Binance insists that employees must hold their investments for a full 90 days. Additionally, the honchos of Binance must report their trading activity every three months. Now that’s a snooze-fest for anyone wanting to sneak in a little trading on the side. Any employee caught slipping can expect immediate termination, which isn’t exactly an option most employees want to test!
Community Reactions & Historical Context
Reactions from the Twitter universe have been mixed. Some users applauded Binance for their strict measures, while others wondered just how feasible this policy is in practice. Not long ago, in 2018, Binance’s insider trading prevention policy was merely a 30-day holding period, but with the market this volatile, it seems like they decided to lengthen the stakes.
Legal Scrutiny Beyond the Trading Desk
Before you think Binance has it all sorted out, hold your horses! Federal prosecutors in the U.S. are snooping around, investigating the exchange for potential money-laundering activities. Adding to the mix, regulators filed a “limited objection” to Binance.US’ efforts to acquire Voyager Digital for a cool billion dollars—a deal that might just need some fine-tuning.
Steps Toward Compliance
In a proactive move, Binance joined the Association of Certified Sanctions Specialists to align itself with global compliance standards. It looks like they’re trying to get their ducks in a row—only time will tell if it’ll be enough to quell the critics.
