Binance Joins Crypto Lobbying Group, Faces Huge Backlash
On December 20th, a press statement revealed that the Binance exchange is now a member of a crypto lobbying group in the US called the Chamber of Digital Commerce.
Binance Collaborates With The Chamber of Digital Commerce
Joanne Kubba, Binance’s VP of public affairs, noted that the collaboration would help provide clear regulations for crypto in the United States.
According to Kubba, Binance has to work with the Chamber to champion favorable and clear regulations for the crypto industry. In addition, he believed that major industry leaders like Binance must partner with regulatory authorities and policymakers.
“Such partnerships would Foster the development of favorable rules for crypto and blockchain technology. This will eventually protect users,” Kubba added.
The Chamber of Digital Commerce’s website states that the group fights on behalf of the crypto community for certain matters. These include tax parity for crypto, KYC/AML regulations for exchanges CBDC research, clarity for regulations on security tokens, and more.
Also, the group has a political action committee (PAC) that produced three candidates for Congress in 2022. The candidates include Patrick McHenry (R-NC), Ron Wyden (D-OR), and Blake Masters (R-AZ).
After the fall of FTX, several users accused Binance of being responsible for its rival’s demise.
Binance Faces Huge Criticism Following FTX’s Demise
During a Congress meeting on December 14th, lawmaker Kevin O’Leary accused Binance of being responsible for FTX’s collapse. O’Leary argued that Binance wants to gain a monopoly over the crypto sector by taking out significant competitors.
Responding to the allegations, Changpeng Zhao, Binance CEO, in a CNBC interview a day later, claimed it was all a “bunch of nonsense.” Zhao noted that they were baseless accusations.
Earlier, a Reuter report claimed that officials of the United States Department of Justice were conflicting on whether to charge Binance for breaking US sanctions on countries.
Binance was reportedly still offering crypto services to sanctioned countries like North Korea and Iraq. Meanwhile, the officials have not yet charged the crypto exchange.
However, the news made several users move their stablecoins and other cryptos from Binance. As a result, Binance recently published its PoR report and an audit report to reassure users of its crypto holdings and reserves.
Unfortunately, some analysts argued that the report lacked several details on how Binance services loans and other internal control structures.
Meanwhile, Binance.US, a subsidiary of the Binance group that operates independently, became a member of the Chamber of Digital Commerce two years ago.
Also, the now-bankrupt crypto firm, FTX, made several contributions to US politicians in the past. Following the company’s bankruptcy, these contributions have come under immense criticism, with many wondering why FTX made such donations.
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