Title: Our Response to the Latest Reuters Story

Author: Zhao Changpeng, CEO of Binance

Compiled by: Frank, Foresight News

As a founder, I understand that maintaining a strong and friendly relationship with journalists is an easy task; we just need to strive to respond quickly and accurately to their requests, and in 99.9% of cases, this will be reported fairly. However, in rare instances, this "trust" relationship can break down to the point where it can no longer operate in a "harmonious" manner.

Unfortunately, this Reuters journalist has put us in such a bad situation, having written a series of reports about us over the past few months, all based on anonymous sources. Earlier this year, due to this breakdown of trust, we took the unusual step of publishing our complete email communication records with this Reuters journalist.

On Monday, October 10, they came to us again with a new list of questions covering a wide range of topics, mainly regarding 1. our commitment to compliance; 2. my personal leadership style. These are topics I am happy to discuss, but what made this time special was that they sent a new signal and crossed the line into my forbidden zone—indicating an intention to report on my children.

The reason is as follows: Over the past two years, we have worked with global law enforcement agencies to seize the assets of criminal organizations worldwide, but my children do not fall within the public interest. This journalist disclosed their information knowingly, putting them in danger, which is principled and intolerable.

Because we could not get a guarantee from this Reuters journalist that they would not write about my family, we again took the unusual step of not responding directly to them. Instead, we will communicate the story directly to the community, attempting to address some of the topics they seem to be accusing us of.

1. Binance's Commitment to Compliance

The cryptocurrency industry has grown at an unprecedented pace, and similarly, regulators are rapidly developing regulatory frameworks that can withstand the test of time, protect consumers, and allow for innovation; everything is evolving quickly.

Historically, few companies have faced such complex challenges. When your market capitalization grows exponentially in a short period, there is no manual that explains how to immediately transition from a small startup to a Fortune 100 company. You also cannot snap your fingers and instantly hire thousands of Web3 engineers, security experts, project managers, and so on that you might need. Therefore, like many startups, Binance is not perfect, but we learn quickly.

Since last year alone, we have hired over 4,000 new employees, many of whom work in compliance, investigations, and security. Today, Binance is a company that is vastly different from when it was founded, and we have been working hand in hand with global regulators to restructure our organization and upgrade our systems. Our global security and compliance team has grown to over 500 employees, including professionals with regulatory backgrounds, senior investigators from renowned blockchain analytics firms, and law enforcement officers who have led some of the largest cybercrime investigations. However, this is an ongoing effort, and we will continue to invest in building a compliance framework that users can trust.

We are the first major exchange outside the U.S. to conduct "KYC" for all users to ensure we can comply with international standards. "KYC" stands for "Know Your Customer," which is a key aspect of a well-managed organization. To enhance the credibility of the entire cryptocurrency ecosystem, we encourage all cryptocurrency exchanges worldwide to do the same.

There is an exaggerated myth that cryptocurrencies are tools for criminals. Reuters reported that Binance had been used as a money laundering channel for at least $2.35 billion in criminal funds, but failed to 1. provide any details on how that figure was calculated, and 2. note that this figure accounts for less than 0.1% of the total funds that have flowed through Binance since 2019.

Despite the fact that Reuters' numbers are severely exaggerated, they still indicate that Binance is one of the most effective financial institutions in keeping illegal funds out, and we have a zero-tolerance policy for criminal activity.

2. My Leadership Style

The Reuters journalist seems to think of me as a "domineering," "secretive," "micromanaging" leader. In fact, I am very transparent about my leadership style, and every Binance employee has access to "CZ's Principles" (see also Zhao Changpeng: The 15 Principles I Follow), an article I wrote to summarize my leadership style and which I update regularly as I learn new things. I know not everyone likes my approach, but it works well for us, and I believe this approach can apply not only to startups like ours but also to more mature companies. I shared these thoughts publicly for the first time last week.

3. Why Don't We Disclose Our Office Location?

This is actually quite similar to the debate about why I do not want my family to appear in the media. Over the past two years, we have worked with global law enforcement agencies to seize countless assets from criminal organizations around the world, directly leading to a cleaner cryptocurrency market.

Therefore, for security reasons, we are very cautious about disclosing our office location, wearing Binance branding, or referring to ourselves as Binance employees. I want to ensure the safety of our employees. However, in every jurisdiction where we operate, regulators have our local address and contact information, and we have announced our main offices in Paris and Dubai. We have also set up a special section on the Binance website specifically for law enforcement.

4. "Tai Chi PPT"

This is an old story that I thought we had clarified, but Reuters seems unwilling to accept the facts. This is the so-called "Tai Chi PowerPoint" story, which was a proposal submitted by external consultants on how to conduct business in the U.S.

Let me clarify once again: it was never executed. I personally rejected it, and the entire PPT was only seven slides long, lacking any actionable direction, looking like something a fifth grader put together. The proposal was rejected after submitting the report and a follow-up round of investigation. Ultimately, Binance.US was established based on the advice of leading law firms in the U.S., and today Binance.US has obtained licenses to operate across the U.S. and operates independently of Binance.com.

5. How Do We Pay Employee Salaries?

One of the great benefits of being in the cryptocurrency business is that we have more options for how to pay employee salaries. In fact, you do not necessarily have to be in the cryptocurrency business—any business can pay employees all or part of their salaries in cryptocurrency. In our practice, employees can decide how they want to receive their salaries based on local laws in each jurisdiction—fiat currency, cryptocurrency, or a combination of both. Importantly, they are required to comply with their country's tax laws without exception.

Conclusion

This blog is much longer than what I usually write. If you read the principles I published recently, you know I am passionate about "minimalism." That said, there is much more to elaborate on these topics, and I believe I will continue to write about them in the future.

Now, I want to reiterate my wishes: A. to build strong, open relationships with journalists from all media; and more importantly, B. to protect the safety of my family. Without a guarantee of B, I cannot commit to A.

I can tolerate occasional negative news because we are focused on building and improving Binance and the blockchain ecosystem, and we will be in this phase for the long term. This is not just about tomorrow, this year, or even next year; we are building a company that we believe will last for a hundred years or more.