Binance employees to adhere to 90-day period prior to trading
Crypto exchange Binance has been a major talking point since the downfall of FTX, both inside and outside of the crypto industry. The company and its founder, Changpeng "CZ" Zhao, have been under a microscope in an attempt to keep the behemoth in line.
On Jan. 10, a tweet surfaced regarding the cryptocurrency exchange’s employee policy to prevent insider trading. It claimed Binance employees of any ranking are not allowed to participate in personal short-term trading and must hold positions for a minimum of 90 days.
Cointelegraph reached out to Binance to confirm its policy and comment on the implications.
A spokesperson from the company replied to Cointelegraph that it has a zero-tolerance policy for using insider information for profit by both employees and relevant family members.
The spokesperson went on to say that the company has an internal process of standing by these conditions. This includes internal protocols investigated by a security team to hold those accountable who have engaged in such behavior.
“Immediate termination is the minimal repercussion," remarked the Binance representative.
Previous coverage from 2018 on Binance’s insider trading prevention policy reported a 30-day time period prior to trading assets rather than the extended 90-day period currently enforced. The company did not comment on the change.
Responses to the tweet had some community members questioning how such a policy can be practically implemented in practice. While many others called the practice “reasonable."
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