Leaked Docs Reveal How Binance Dealt With US Regulations: Report

Crypto trading colossus Binance created a corporate plan for profiting from the U.S. market while avoiding regulatory scrutiny, Forbes reported Thursday, citing a 2018 document it obtained.

AccessTimeIconOct 29, 2020 at 8:13 p.m. UTC
Updated Sep 14, 2021 at 10:25 a.m. UTC

Cryptocurrency trading colossus Binance Holdings Limited created a corporate plan for profiting from the U.S. market while avoiding the country's regulatory scrutiny, Forbes reported Thursday, citing a 2018 document it obtained.

  • The leaked presentation outlines a "Tai Chi entity" that would funnel revenue to Binance through a web of corporations without exposing its parent to the financial regulator's microscope, according to the Forbes article, which included a screenshot of a slide but not the entire deck.
  • When asked for comment, a Binance spokesperson directed CoinDesk to tweets by exchange CEO Changpeng "CZ" Zhao. He called Forbes' reporting bunk and asserted that Binance follows all local laws, including those in the U.S. "Anyone can produce a 'strategy document,' but it does not mean Binance follows them," said Zhao, adding that the slide deck was produced by a third party, not his company.
  • U.S. affiliate Binance.US operates under a corporate structure similar to the "Tai Chi" network, according to Forbes. Binance.US CEO Catherine Cooley has long refused to discuss Binance.US's ownership.
  • Binance in June 2019 unveiled plans to launch a U.S. exchange registered with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department. The exchange updated its terms of service the following day to bar U.S. users from accessing Binance's global hub.
  • Forbes said the Tai Chi document calls for "strategic" virtual private network (VPN) usage to sidestep the Securities and Exchange Commission and New York State Department of Financial Services, and warns Binance employees against working in the U.S. to mitigate "enforcement risks." Forbes additionally claims the document contains a "detailed strategy for distracting" U.S. regulators.
  • Binance used to be based in Malta, but its headquarters location has been something of a mystery for most of this year. Zhao has been cagey on the matter in public appearances.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.