There has been a lot of developments in the crypto space since its inception. But it seems that the regulatory authorities are wakening up to strengthen the system.
Amid such concerns, Binance CEO, Changpeng Zhao, opines that the crypto industry might grow and develop, but the regulatory framework is not defined.
According to him, Binance is not anti-regulation. But instead, the exchange is willing and ready to cooperate with the regulators.
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Changpeng Zhao made this statement in a Tuesday open letter where he also mentioned that the industry had grown a lot since the launch of Binance in 2017.
Therefore, all the regulatory issues surrounding crypto haven’t deterred the players in the industry from pushing forward with growth and expansion.
Is Binance Regulatory Compliant?
There has been a lot of regulatory issues around the four-year-old crypto exchange Binance. Many countries had halted their operations due to non-compliance with financial laws.
While addressing this situation in the open letter, Zhao mentioned that the team is willing and eager to collaborate with regulatory authorities.
According to the CEO, Binance aims at becoming a positive contributor, and compliance with laws is the best way to do it.
But given what is happening in the crypto industry, the Binance CEO also mentioned that there is no clear regulatory framework for crypto in many countries.
But even at that, he opines that the more the push for regulations increases, the easier it will be for the crypto industry to emerge solidly.
The regulations mean more maturity, and with that, there will be more trust, participation, adoption, and expansion.
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When people discover that there are regulatory guidelines for crypto operations, their trust will increase, thereby driving more adoption. As for compliance, the CEO stated that it is a journey for new emerging industries such as cryptocurrency.
He, however, mentioned that as the industry grows, the players should expect more responsibilities and complexities, which the growth brings.
Binance Ready For Partnering With Regulators
In his Tuesday’s open letter, too, CEO Zhao wrote that Binance is committed to partner with regulators. He also mentioned that the company is set to hire and place more processes and systems to safeguard users’ interests, given the increasing growth of the platform.
Zhao also wrote that the company has been adding to its “international compliance team & Advisory Board’ since last year. Now, they have grown by 500% with the addition of global regulators such as the “Financial Action Task Force.”
The CEO also mentioned that Binance hasn’t lagged in carrying out the “Anti-Money Laundering” requirements for users of its platform. Also, the company has been working with CipherTrace, a crypto-intelligence company, to protect the platform.
Also, Zhao mentioned their commitment to ensuring an increase in financial freedom and inclusion to improve society.
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However, he also mentioned that the company would welcome any constructive guidance that comes in its way. Though, the exchange can also grow better.
Despite all the regulatory concerns the Binance Coin hovering in the green zone | Source: BNBUSD on TradingView.com
The open letter seems to have come at the appropriate time given the scrutiny on Binance. Many regulators from different countries, including the United States, Japan, United Kingdom, Canada, etc., have started monitoring its operations.
There have also been some unsavory consequences for users as even banks are planning to suspend bank transfers to Binance’s platform.
Featured image from Global Crypto, chart from TradingView.com