Tuesday, July 27, 2021

Binance CEO Responds To Global Regulatory Pressure

Binance CEO Changpeng “CZ” Zhao has likened the recent pressures by regulators against his exchange business to that of the initial development of the car.

In an open letter on Wednesday, CZ said the adoption and development of crypto contained many parallels to regulations around automobiles in that “laws and guidelines were developed along the way.”

“We are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries,” said CZ. “More regulations are, in fact, positive signs.”

Binance has been caught in a tangled web of regulatory developments as of late including in the jurisdictions of the Cayman Islands, the U.K., Thailand, and Singapore, among others. At times, the exchange has attempted to stay ahead of the regulatory curve including having hired two former members of the Financial Action Task Force to its advisory team in March.

Also Read: UK Bans Binance Cryptocurrency Exchange

In his letter, the CEO reiterated that his exchange possessed requirements for using his platform including stringent insider trading policies where users are unable to actively trade any asset within a 30-day period.

In addition, a Secured Asset emergency fund (SAFU) designed to protect user assets and listing standards as well as a firewall to separate out the listing team, was also added in July, the CEO noted.

“Compliance is a journey – especially in new sectors like crypto,” said CZ, who noted the crypto industry contained a lot of uncertainty. “We also recognize that with growth comes more complexity and more responsibility.”

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