The crypto exchange acknowledged the three-month regulation prohibiting workers and their family members from engaging in insider trading.
Since the collapse of FTX, the cryptocurrency exchange Binance has become a prominent topic of conversation inside and outside of the sector. The corporation and its creator Changpeng Zhao have been investigated to run the firm securely.
A tweet referencing the crypto exchange’s staff policy to avoid insider trading appeared on January 10. Apparently, all Binance staff are forbidden from engaging in short-term trading for themselves and are required to keep their positions open for at least 90 days.
Cointelegraph contacted Binance to confirm their policy and remark on its consequences. A corporate spokeswoman informed Cointelegraph that the firm has a zero-tolerance policy on the use of insider knowledge for financial gain by workers and family members.
“All employees are required to put their assets on hold for 90 days, and Binance’s management is required to record all trading activities every three months.”
The spokesman continued by stating that the corporation has an internal mechanism for upholding these requirements, including internal protocols evaluated by the security team in order to hold responsible anyone who has participated in such conduct. “Immediate termination is the least severe consequence,” the Binance spokesman said.
Earlier in 2018, it was claimed that Binance’s insider trading prevention policy stated a 30-day duration as opposed to the existing 90-day period. The corporation made no statement about the change.
In reaction to the tweet, several community members raised concerns about the feasibility of enforcing such a regulation, while others defended it as fair.
U.S. authorities also lodged a “limited objection” against Binance on January 4. Meanwhile, Binance joined the Association of Certified Sanctions Specialists to meet worldwide sanctions compliance requirements as one of the first crypto enterprises to do so.
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