Gary Gensler Was Offered Binance Advisorial Position A Few Years Ago

SEC chairman Gary Gensler. (Photo; Doc. Owlting)

JAKARTA The controversial chairman of the US Securities and Exchange Commission (SEC) Gary Gensler was apparently offered advisory positions in Binance in 2018 and 2019. The information was conveyed by The Wall Street Journal according to an internal message examined. Despite rejecting the offer, Gensler allegedly shared his licensing strategy with the crypto exchange.

This revelation comes amid increasing surveillance of Binance by American regulators investigating whether the exchange violates securities laws by allowing US investors to trade on its platform.

While Binance and its affiliates in the US, Binance.US, have insisted that they are different entities, the internal communications obtained by The Journal seem to suggest otherwise. The messages suggest that Binance and Binance.US are closely related, with staff, technology, and finance mixed between the two companies.

Former Binance.US CEO, who initially claimed the companies were "very different", then asked staff to provide important points about their work to be known by Binance CEO Changpeng Zhao and co-founder Wei Zhou.

In addition, a Binance executive suggested a way to keep the exchange of his biggest clients in the US, including by using a virtual private network (VPN) and overseas entities.

Binance also faced operational problems at the start of its appearance. Shortly before Binance.US was launched, a Binance staff member in Shanghai accidentally started trading. When asked who did it, Binance CEO Changpeng Zhao reportedly replied, "one here in Shanghai, an operating error."

An internal message also revealed that Binance and Binance.US staff gathered at an event, where Binance.US CEO at the time asked staff to think about "Your tackle (your work system requiring answers, access, approvals, funding, in Shanghai)." "SH" refers to Shanghai, according to sources familiar with the matter.

Meanwhile, Gensler's tenure in the SEC was marked by increased scrutiny over the crypto industry. He called for stricter regulations on digital assets, arguing that they are often used to circumvent traditional financial rules.

The Binance and Gensler cases show how complicated the relationship between regulators and crypto exchanges is. In addition, it also reveals how difficult it is for regulators to monitor the crypto industry which continues to grow very quickly and often maneuvers in gray areas.

This emphasizes the need for better cooperation and communication between regulators and crypto companies to reach fair agreements and maintain market integrity. Industry players must also strengthen their commitment to comply with regulations and maintain transparency in their operations.