Binance CEO Changpeng Zhao (CZ) has pushed back allegations of deceiving regulators in the US. As <a href="https://www.forbes.com/sites/michaeldelcastillo/2020/10/29/leaked-tai-chi-document-reveals-binances-elaborate-scheme-to-evade-bitcoin-regulators/?utm_source=TWITTER&amp;utm_medium=social&amp;utm_content=4023397642&amp;utm_campaign=sprinklrForbesCrypto&amp;sh=4bc7a3272a92">reported</a> by Forbes on Oct. 29, the news outlet has claimed to obtain a 2018 document revealing Binance's plan on creating a U.S. based entity called “Tai Chi” to trick American regulators.
<h2><strong>"Tai Chi" Intended To Act As Insulation From Enforcement</strong></h2>
The document dates back to 2018, (even before Binance.US exchange's launch) on setting up a “Tai Chi entity” in the U.S. that would have acted as an insulation from regulators and enforcement.

The report reads:

“The leaked Tai Chi document, a slideshow believed to have been seen by senior Binance executives, is a strategic plan to execute a bait and switch. While the then-unnamed entity set up operations in the United States to distract regulators with feigned interest in compliance, measures would be put in place to move revenue in the form of licensing fees and more to the parent company, Binance. All the while, potential customers would be taught how to evade geographic restrictions while technological work-arounds were put in place.”

The Tai Chi document includes plans on swindling the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, Securities and Exchange Commission, Commodity Futures Trading Commission, The New York State Department of Financial Services.

The document further includes how the "Tai Chi entity" could push its revenue back into Binance's core business, registered in the Cayman Islands in the form of license and service fees.
<h2><strong>Binance CEO Slams The Forbes Report As "FUD"</strong></h2>
According to Forbes, the Tai Chi document was created by an ex-Binance employee and CEO of Koi Trading, Harry Zhou.

Responding to the allegations, <a href="https://www.cryptoknowmics.com/news/cz-binance-believes-cbdc-might-threaten-bitcoin-in-long-run/">CZ</a> takes to his Twitter to slam the Forbes report as “FUD” while stating “Anyone can produce a ‘strategy document’, but it does not mean Binance follows them.”
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">FUD. 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 <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw">@Binance</a> employee (current or ex). Anyone can produce a “strategy document”, but it does not mean Binance follows them. 1/7 <a href="https://t.co/AnIUJLXWTZ">https://t.co/AnIUJLXWTZ</a></p>
— CZ Binance (@cz_binance) <a href="https://twitter.com/cz_binance/status/1321887211084603392?ref_src=twsrc%5Etfw">October 29, 2020</a></blockquote>


The CEO further stated that Binance had <span class="css-901oao css-16my406 r-1qd0xha r-ad9z0x r-bcqeeo r-qvutc0">always operated within the boundaries of the law as evidenced in the many international exchanges that Binance helped launch in countries such as </span>the US, UK, Singapore, Korea, Turkey and Jersey.

Binance CEO Responds To Allegations On Deceiving US Regulators

Binance CEO Changpeng Zhao (CZ) has pushed back allegations on deceiving regulators in the US based on rumour on the 2018 “Tai Chi” document.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Binance CEO Responds To Allegations On Deceiving US Regulators

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