Binance, the biggest cryptocurrency exchange by volume, has come under fire from regulators across the globe recently, in jurisdictions that include the UK, Thailand, Singapore, and others. CZ, the CEO of Binance, has sought to clarify the Binance position on regulations through an open letter to users.
In the letter, CZ comments on the recent “hyper-focus on regulation” as it pertains to Binance. He then uses the letter to clarify the Binance stance on regulation, and also outlines how his company plans to comply with regulations going forward.
CZ explains how his company puts users' interests first:
“we have always held Binance to the highest standard to prioritize our users’ best interests -- a goal that we share with regulators around the world.”
He goes on to outline some of the requirements Binance has put in place for users of the platform, as well as the industry standards set. Among these are a Secured Asset Emergency Fund (SAFU) to protect user assets, and a rigorous standard for listings.
They have put in place educational resources such as tutorials, and a Binance Academy to help their customers make more informed choices. In addition, to encourage more responsible trading, there are set limits and protections for those wishing to use the higher risk trading products.
CZ explains how his company has worked with law enforcement to crack down on money laundering, terrorist financing, and scams. He cites that so far this year Binance has assisted with 5600 investigation requests.
He recognises that “clear regulations are critical for continued growth” and that laws and guidelines should be “developed along the way”. He uses the parallel of how the car came into being, and how there weren’t any traffic laws, and things such as safety belts at first. These laws were developed as the cars were being driven along the road.
He states that “compliance is a journey”, and that while Binance hasn’t always got things exactly right, his company is growing fast, but is looking to learn and improve every day.
He refers to some of the “tangible” steps that Binance is taking, or plans to take, which include:
- Growing the Binance international compliance team
- Expanding already robust compliance partnerships
- Localising operations to comply with local regulations
“Our vision is to increase freedom and inclusion for a better human society. We firmly believe that our industry will benefit society through the creationing of inclusive financial opportunities. We call this the “freedom of money”. That’s why, in our first year as a company, we set up the industry’s first charity foundation Binance Charity, which has contributed $15 million USD to over 20 projects for education, sustainability, and other causes.”
CZ closes the letter by welcoming constructive guidance, and by welcoming experienced advisors and other talented individuals who can help Binance to “build better”.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice