Binance employees to adhere to 90-day period prior to trading

Crypto exchange Binance has been a major talking point since the downfall of FTX, both inside and outside of the crypto industry. The company and its founder, Changpeng “CZ” Zhao, have been under a microscope in an attempt to keep the behemoth in line.

On Jan. 10, a tweet surfaced regarding the cryptocurrency exchange’s employee policy to prevent insider trading. It claimed Binance employees of any ranking are not allowed to participate in personal short-term trading and must hold positions for a minimum of 90 days.

Cointelegraph reached out to Binance to confirm its policy and comment on the implications.

A spokesperson from the company replied to Cointelegraph that it has a zero-tolerance policy for using insider information for profit by both employees and relevant family members.

“Every employee is subject to a 90-day hold on any investments they make, and Binance’s leaders are mandated to report any trading activity on a quarterly basis.”

The spokesperson went on to say that the company has an internal process of standing by these conditions, including internal protocols investigated by a security team to hold those accountable who have engaged in such behavior.

“Immediate termination is the minimal repercussion,” remarked the Binance representative.

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Previously in 2018, it was reported that Binance’s insider trading prevention policy included a 30-day period rather than the extended 90-day period currently enforced. The company did not comment on the change.

In response to the tweet, some community members questioned how such a policy could be practically implemented, while many others called the practice reasonable.

Related: ‘Binance is the crypto market:’ Arcane crowns the exchange 2022’s winner

The crypto world revolving around Binance does not stop. Federal prosecutors in the United States are conducting a probe of the cryptocurrency exchange in relation to potential money laundering.

Additionally, on Jan. 4, regulators in the U.S. filed a “limited objection” to Binance.US’ proposed billion-dollar acquisition of Voyager Digital.

Meanwhile, Binance became one of the first crypto firms to join the Association of Certified Sanctions Specialists to address standards of compliance with global sanctions.

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Written by Savannah Fortis on 2023-01-13 02:35:53.

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