Leading cryptocurrency exchange, Binance, has followed up on a statement made by the CEO a few weeks ago that ‘Compliance is a Journey.’ Per a press conference on Tuesday, Binance’s CEO Chanpeng Zhao (CZ), stated that the exchange will take active steps in cooperating with regulators globally. According to him, Binance will ‘actively work with regulators as more crypto-specific frameworks are introduced.’
In a series of tweets on Tuesday, CZ gave a summary of what was discussed at the 1-hour press conference. The CEO noted that compliance was a necessary tool as consumer protection was important. CZ declared that it has already begun obtaining licenses from countries where there are extant regulations.
Binance Subject to Regulatory Pressure
Within the last few weeks, Binance had been the subject of a crackdown in most regions around the globe. In the UK, the Financial Conduct Authority (FCA) ordered the exchange to quit its activities on the premise of non-compliance. While that was going on, authorities in Ontario issued a red card to the exchange. The Ontario Securities Commission (OSC) claimed Binance was unwilling to register with it.
In a number of countries like Italy, Thailand, Cayman Islands, Binance was up against the wall on regulations. The US Treasury and SEC were also haranguing the exchange for failure to comply with existing regulations. Amid all of these challenges, Binance suspended some payment services in the UK- Single Euro Payments Area (SEPA) and Faster Payments Services (FPS). One of its major partners in the UK, Clear Junction, withdrew its services while some banks stopped customers from using their accounts to do transactions on the exchange.
With its new stance, Binance hopes to turn things around and fend off the regulatory sharks on its back. As CZ noted, ‘We need to be a licensed financial institution everywhere that we operate,’ as such it has taken a ‘strong pivot.’ He stated that the exchange had begun obtaining operating licenses in market areas in EMEA, Asia-Pacific and Latin America.
Binance to Hire Experts with Leadership and Regulatory Experience
As part of its new plans, Binance will actively hire hands with regulatory and compliance experience, which does not signify that he will be replaced as the CEO. CZ stressed that he remains the head of the crypto platform. In light of the latest development, users can be assured of the transparency of the exchange. It was reported during the UK regulatory saga that the exchange lost some of its users to rival crypto platforms.
Binance also introduced new policies on the exchange, such that users who have only completed the basic verification process will be restricted to a withdrawal amount (0.06 BTC – $2000). Furthermore, new users will be restricted to only 20x leverage for Futures trading. This policy applies to users that have joined the exchange within the last 30 days. Binance reported that it will extend this policy by July 28 to users that joined the exchange in the past 60 days. A new API was added to the platform that allows third parties to monitor transactions.