Binance confirmed the three-month policy to prohibit insider trading by employees and their relevant family members.
Since the demise of FTX, the cryptocurrency industry as a whole and outside of it have been talking a lot about the crypto exchange Binance. In an effort to control the behemoth, Changpeng “CZ” Zhao, the company’s creator, has been closely scrutinized.
The cryptocurrency exchange’s staff policy to prevent insider trading was discussed in a tweet that appeared on January 10. It stated that all workers of Binance are required to hold positions for a minimum of 90 days and are prohibited from engaging in personal short-term trading.
According to a corporate spokeswoman, there is zero tolerance for workers’ and related family members’ use of insider information for financial gain.
“Every employee is subject to a 90-day hold on any investments they make, and Binance’s leaders are mandated to report any trading activity on a quarterly basis.”
The representative continued by stating that the organization has internal procedures for upholding these terms, including internal protocols that are looked into by a security team to hold anyone responsible for engaging in such behavior. Binance representative remarked:
“Immediate termination is the minimal repercussion”
It was previously reported that, as opposed to the prolonged 90-day timeframe currently in effect, Binance’s insider trading prevention policy featured a 30-day period. On the modification, the corporation made no comments.
Some community members commented on the tweet by asking how such a practice could be practically applied, while many others thought the approach was logical.
The Binance-centered cryptocurrency industry never stops. The cryptocurrency exchange is being investigated by federal authorities in the US for possible money laundering.
In addition, on January 4, American regulators submitted a “limited objection” to Binance. US’s proposed $1 billion purchase of Voyager Digital to address criteria of compliance with international sanctions, Binance joined the Association of Certified Sanctions Specialists as one of the first cryptocurrency companies.
