The story of Binance is successful although it has been involved in controversy on numerous occasions. This is the largest cryptocurrency exchange in the world, but it has the problem that there are doubts about its way of operating and the way in which it has become the great dominator of the sector.
The United States Securities and Exchange Commission has it in its sights; China prevented its use in its country; and the National Securities Market Commission (CNMV) of Spain has included it in its gray list, in which it is informed of those entities without authorization that could be carrying out financial activities; And all this, added to the fact that it does not have physical headquarters, means that many users have doubts and have lost confidence in the exchange.
However, to try to put an end to any doubts that may exist in this regard, Binance has decided to opt for implement different measures for self-regulation. This was made clear by the CEO of the company, Changpeng Zao, who assured that in the regulatory processes they see «an incredible opportunity for proactive companies like Binance to set the course for the sector as a whole. We firmly believe that, by working together with regulators and legislators in the development of clear regulatory and legal frameworks, actively participating in self-regulation, and always putting our users first, protecting their interests, we can help welcome the world of crypto to the next 1 billion users.
In the same letter, he talked about some of the steps they are taking to shape their regulatory compliance program to protect their users:
Practice self-regulation
«We hold ourselves to the highest standards in line with our commitment to regulatory compliance. This month, we have restricted the offering of derivative products to Hong Kong users in a proactive manner to help create an ecosystem blockchain more sustainable«said the CEO of Binance, who also assured that they are trying to increase the regulatory compliance team. «We have increased our compliance team. compliance (regulatory compliance) 500% year to date in 2021 and we plan to double the size of the team by the end of the year,” he said.
On the other hand, he has emphasized that the incorporation of strategic regulatory compliance advisors, which has included the appointment of experts in the field, with the clear objective of obtaining regulatory advice of the highest level.
On the other hand, they have also indicated their moves to establish local centers for operations and companies. «We intend to be regulated and request operating licenses to exchanges of cryptocurrencies in more local jurisdictions than any other ecosystem blockchain. From Binance US to Binance Singapore, we work to maintain fully regulated entities that use the Binance brand,» said the Binance CEO.
On the other hand, he has assured that they have worked to implement industry-leading RegTech tools, with the clear objective of achieving regulatory compliance with international standards, being one of the pioneers when it comes to implementing some of these technological tools.
On the other hand, it is worth highlighting their commitment to trying to Maintain Know Your Customer (KYC) compliance, in addition to launching a system for requests from legal authorities. «We have launched a Legal Authority Request System (LERS) to help us improve collaboration with government and law enforcement, to review each case and cooperate in particular cases on the disclosure of legally required information, in accordance with our terms of use and applicable laws.»
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