As crypto exchange Binance faces growing scrutiny from the U.S. Securities and Exchange Commission (SEC), Binance’s low-profile co-founder Yi He commented on the company’s regulatory standing during her recent interview with Bloomberg on Wednesday, June 28.
Yi He added that the crypto exchange Binance has always been supporting and respected regulators irrespective of their stand on cryptocurrencies. She also acknowledged the fact that regulations, in general, are meant to protect investors and are “inevitable globally”. Yi He said:
If [regulators]really took the time to understand our industry, they would see that if Binance isn’t compliant, then practically no other global trading platform or offshore company is.
Bloomberg highlighted the close relationship between Yi He and Binance CEO Changpeng Zhao, noting that they have a roommate-like bond and share children. Concerns were raised about potential conflicts of interest within the company leadership. However, Yi He clarified that she and Zhao oversee different aspects of the company.
Yi He plays a significant role in the Binance team responsible for selecting which cryptocurrencies to list. Bloomberg described this group as highly secretive, with only a few insiders aware of its members.
In addition, Yi He is currently in charge of Binance Labs, the company’s venture capital division. She has played a crucial role in the growth of BNB Chain and oversees Binance’s institutional client business and acquisitions.
In its lawsuit against crypto exchange Binance, the U.S. Securities and Exchange Commission (SEC) accused Binance chief Changpeng Zhao of his ties with market makers and manipulating the trading volumes at Binance.US.
Yi He chose not to comment on this matter, however, she added that Binance didn’t misuse user funds or used its BNB token for loan collateral.
According to Bloomberg, Yi He, an early shareholder with significant wealth, could potentially be affected by the lawsuit’s outcome.
In the interview, Yi He mentioned that her limited English proficiency has prevented her from playing a prominent public role for Binance. She acknowledged that her interactions with Western journalists might reinforce the perception that Binance is a Chinese company. Binance has consistently denied being based in China or having any Chinese affiliations.
Crypto exchange Binance continues to face the heat of regulatory action against it. In another recent development, Binance’s European banking partner Paysafe Payment Solutions announced its decision to withdraw support to the exchange. Paysafe said in an email to Reuters.
Paysafe and Binance are now working to mutually implement an orderly and fair process to terminate this service over the next few months.
