Binance confirms guidelines for insider trading

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Limit short-term insider trading

Binance, a major crypto asset (virtual currency) exchange, has already set guidelines for insider trading. It is a form of setting restrictions on short-term transactions of insiders.

Cryptocurrency journalist Wu Blockchain first reported on the 10th as follows.

Binance co-founder He Yi said that Binance employees, regardless of their position, are not allowed to conduct personal short-term crypto trading and must hold the position for more than 90 days before trading. said there is

Cointelegraph also contacted Binance in response, and a company spokesperson confirmed the rule. All employees said they were required to hold positions for 90 days on all trades.

Binance executives continue to be required to report all trading activity on a quarterly basis and have internal processes to hold accountable for such conduct.

Binance CEO Changpong Zhao (CZ) also tweeted on the 11th confirming this. He also points out that Binance had such insider trading rules in place from the beginning.

“We used to have to hold positions for 30 days, but we changed it to 90 days two years ago,” CZ explained.

What is insider trading?

An insider is someone who knows important information that only insiders can know about the company, and who buys or sells stocks, etc. based on that information before the information is made public.

▶Cryptocurrency Glossary

Investigation of insider trading

In May last year, Argus, a company that provides employee compliance services in the financial sector, pointed out possible insider trading on several cryptocurrency exchanges, including Binance.

Argus analyzed trading activity by looking at wallets that repeatedly bought a token before its listing announcement and sold it shortly after listing.

As a result, during the period from February 2021 to April 2022, profits of about 130 million yen or more for Coinbase, about 85 million yen or more for Binance, and about 13 million yen or more for FTX were generated from these insider transactions. claimed to be on the rise.

Binance’s CZ denied insider trading. “Binance has a strict policy and none of the wallets analyzed by Argus are associated with our employees,” he said. He replied that Coinbase and FTX also have compliance policies.

Relation: Suspicion of insider trading on virtual currency exchanges, major industry denies across the board

After that, FTX went bankrupt and it was revealed that it had been conducting sloppy management such as misappropriation of customer funds.

Binance is also striving to strengthen compliance by starting to disclose reserve assets and continuing to register licenses in various countries.

Relation: Binance CZ “The industry will continue to have difficult times in the coming months”

The post Binance confirms guidelines for insider trading appeared first on Our Bitcoin News.

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