Page 16 - 期货和衍生品行业监管动态（2023年4月）

期货和衍生品行业监管动态

The complaint charges that for much of the relevant period, Binance did not

require its customers to provide any identity-verifying information before trading on

the platform, despite the legal duty that entities like Binance functioning as futures

commission merchants (FCMs) collect such information, and failed to implement basic

compliance procedures designed to prevent and detect terrorist financing and money

laundering.

The complaint further alleges that even after Binance purported to restrict U.S.

customers from trading on its platform, Binance instructed its customers – in particular

its commercially valuable U.S.-based VIP customers – on the best methods for evading

Binance’s compliance controls. In addition, the complaint charges Binance with acting

as a designated contract market or swap execution facility based on its role in

facilitating derivatives transactions without registering with the CFTC, as required.

The complaint also charges the entity defendants with failing to diligently

supervise Binance’s activities as an FCM. Among the numerous supervisory failures

detailed in the complaint is Binance’s instruction to employees to communicate with

U.S.-based customers concerning control evasion through a messaging application that

was set to automatically delete written communications. According to the complaint,

the reason Binance used that communication method was to avoid leaving any evidence
of their efforts to retain U.S.-based customers.

The complaint further charges the Binance, Zhao and Lim with willful evasion of

the requirements of the CEA. As alleged, the defendants conducted certain activities

outside the U.S. designed to avoid CFTC regulation, such as intentionally structuring

their entities and transactions to avoid registration requirements and instructing U.S.

customers as well as other customers as to how to evade Binance’s compliance

controls.

As alleged, Zhao is liable for Binance’s violations based on his control over

Binance and his long-running failure to act in good faith concerning Binance’s

misconduct. According to the complaint, Zhao owned and controlled dozens of entities

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