A major cryptoasset (virtual currency) exchange, Binance, has already established insider trading standards. It is a method of limiting the short-term trades of insiders.
On the 10th, cryptocurrency journalist Wu Blockchain initially reported as follows:
He Yi, co-founder of Binance, stated that Binance workers, regardless of status, are prohibited from engaging in short-term cryptocurrency trading and must hold the position for at least 90 days prior to trading. As stated, there are
Limit intraday insider trading.
In response, Cointelegraph also contacted Binance, whose representative confirmed the rule. All employees reported that they were obliged to maintain 90-day positions in all trades.
Executives of Binance continue to be required to report all trading activities quarterly and are held accountable for such behaviour by means of internal procedures.
Binance CEO Changpong Zhao (CZ) also confirmed this through Twitter on November 11. Additionally, he notes that Binance had such insider trading regulations in place from the start.
CZ indicated that the requirement to maintain posts for 30 days was changed to 90 days two years ago.
An inquiry into insider tradingIn May 2017, Argus, a company that helps the financial industry with employee compliance, found what it thought were cases of insider trading on several cryptocurrency exchanges, including Binance.
Argus studied transaction activity by examining wallets that purchased a cryptocurrency repeatedly prior to its listing announcement and sold it shortly after listing.
Consequently, between February 2021 and April 2022, these insider trades created gains of about 130 million yen or more for Coinbase, approximately 85 million yen or more for Binance, and approximately 13 million yen or more for FTX. reportedly on the rise.
The CZ of Binance denied insider trading. “Binance has a stringent policy, and none of the wallets evaluated by Argus belong to our staff,” he explained. Coinbase and FTX also have compliance standards, he responded.
After that, FTX went bankrupt, and it was discovered that the company had engaged in shoddy management, including the misuse of consumer monies.
Binance is also attempting to increase compliance by disclosing reserve assets and registering licences in multiple jurisdictions.