Is Binance trying to escape US regulations or is it just FUD?

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Last Updated on 1 November 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Binance CEO Changpeng Zhao unleashed a twitter rant aimed at correcting a Forbes article accusing his company of trying to circumvent US regulations. It comes at a time when more and more US companies are entering the crypto world and thus the timing is at least a bit suspicious.

In a time where PayPal entered the world of Crypto, JP Morgan is bullish on Bitcoin and the Square and Coinbase CEO are engaged in a round of political accusations, a major magazine brings an article aimed at accusing a Chinese crypto player of cheating US authorities. A lot is happening to say the least. Meanwhile Bitcoin still trades above $13k.

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Tai Chi

Forbes claims that Binance, the world’s biggest crypto platform, tried to escape US regulations by putting in place a structure:

Dubbed the “Tai Chi entity,” in an allusion to the Chinese martial art whose approach is built around the principle of “yield and overcome,” or using an opponent’s own weight against him.

Changpeng Zhao, whose company Binance makes about $10 billion in total crypto trades per day, immediately countered with a 7-part Twitter response, stating:

The statements and accusations in the article are incorrect. The whole article hinges on a 3rd party document. The said document was not produced by a Binance employee (current or ex). Anyone can produce a “strategy document”, but it does not mean Binance follows them.

FUD

Most commenters, both on CZ’s twitter and on the Forbes article, responded with FUD though, standing for fear, uncertainty and doubt.

Whenever crypto enthusiasts do so, they mean to say that outsiders are living in FUD and you should just HODL.