CZ Says Binance Operates Under Heavy Regulatory Oversight as Scrutiny Intensifies

Changpeng “CZ” Zhao said Binance now operates under close global regulatory supervision, pushing back against claims that the exchange manipulates markets or acts without oversight.

Speaking during a wide-ranging community AMA, the Binance founder stressed that regulators actively monitor the platform and can review trading activity across accounts.

Notably, his statement comes as Binance faces renewed public scrutiny following sharp market volatility in October and a wave of online accusations linking the exchange to a broader crypto sell-off.

Binance Under ADGM and U.S. Monitoring

CZ emphasized that Binance no longer operates in a regulatory gray zone, describing a framework that includes oversight from Abu Dhabi Global Market (ADGM) and court-appointed U.S. monitors. According to him, this structure makes market manipulation claims implausible.

“Binance is not in a position to do anything funky,” he said, adding that regulators can audit activity across the platform.

CZ also rejected accusations that Binance or its executives deliberately triggered the October 10 market crash. He argued that macroeconomic events, including tariff-related announcements, drove the sell-off, while exchanges reacted to surging volumes.

Moreover, he further dismissed claims that Binance dumped Bitcoin to move prices, noting that Bitcoin’s size makes manipulation economically unrealistic.

Proof of Reserves, User Responsibility, and Market FUD

CZ reiterated that Binance operates as a 100% reserve exchange and highlighted its proof-of-reserves system as evidence of solvency. He pointed to December 2022, when Binance processed roughly $14 billion in withdrawals within a week without halting operations.

Addressing criticism around Binance Alpha and MemeRush, CZ said access to tokens does not equal endorsement. He described Binance Alpha as a gateway to decentralized assets rather than a listing standard.

“Getting on Alpha doesn’t mean very much. It’s not a spot listing,” he said, adding that users must still do their own research.

Notably, CZ also spoke bluntly about responsibility in trading, pushing back against demands for compensation tied to market losses.

Interestingly, following the surge of negative comments, CZ attributed part of it to coordinated “water army” campaigns and competitor-driven attacks, but said such efforts often backfire.

Despite criticism, CZ said Binance’s user base continues to grow, highlighting his view that regulatory clarity and transparency now define the exchange’s role in the global crypto market.

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