Binance ’s Road To Compliance Continues With A List Of Rights For Crypto Users
17 November 2021 - 12:57PM
NEWSBTC
After a few scares, Binance ’s offensive moves start. Regulators
around the world surrounded the biggest cryptocurrency exchange by
market capitalization. Their lawyers were working overtime. There
were pitfalls all around. A few months later, Binance is the one
setting the rules. They’re the ones inviting the regulators to the
castle. They’re trying to set the tone and define what a fully
compliant cryptocurrency exchange is. Related Reading |
Breaking Down The Bitcoin Binance Flash Crash By The Second The
campaign started with Binance’s first traditional media ad in the
company’s history. A full-page in the Financial Times and a website
to complement it. “Crypto belongs to all of us. But there’s still
work to be done if we want this breakthrough innovation to become
part of our daily lives. Like seat belts in a car, a more regulated
crypto market provides greater protections for everyday users,”
says the ad’s copy. Exactly what the regulators want to hear.
How #Binance plans to welcome the next billion crypto users.
pic.twitter.com/0oigvdgQCj — CZ 🔶 Binance (@cz_binance) November
16, 2021 What Did Binance Say To The Press? The company’s CEO,
Changpeng Zhao AKA CZ, spoke to Bloomberg to spread the news. About
the aim of their campaign, he told them: “We have been
communicating with many regulators around the world. As a new
industry, we like to share what we think is important for
users. We want to put this out there so everybody understands
from our position what’s important. We already shared this — not in
this format — with different regulators, and we want the users to
know as well. We have a much more detailed framework that we share
with regulators directly.” He also tells them that the regulators
were skeptical of Binance at first, but that in-person meetings
have helped win them over. “When people see me in person, they say,
“look, CZ is very reasonable, very calm, not a crazy guy.” In a
related topic, when they ask him if the users leave as they tighten
compliance, CZ answered “There is a small group of people who do
not like to do know-your-customer rules, get verified etc. It’s a
free market. There are other platforms they could use.” And then
claims, “We only lose 3% of the users.” BNB price chart on FTX |
Source: BNB/USD on TradingView.com Highlights From The “10
Fundamental Rights For Crypto Users” Since the focus of this
article is regulation and compliance, let’s focus on the three
rights that touch the subject. For those interested in the rest of
the text, here’s the website. Binance basically promises financial
services, security, and privacy for everyone. “II. Industry
participants have a responsibility to work with regulators and
policymakers to shape new standards for crypto assets. Smart
regulation encourages innovation and helps keep users safe.”
Binance pledges to work with regulators and invites them to the
castle. Does the part about “smart regulation” contain a light
threat? If it does, it leaves space for plausible
deniability. “III. Responsible crypto platforms have an
obligation to protect users from bad actors and implement Know Your
Customer (KYC) processes to prevent financial crimes.” Once again,
Binance promises to implement KYC to all its users. The platform
used to let unverified accounts transact small amounts. As soon as
the regulators started knocking at their door, Binance announced
KYC for everyone. And here, they double down on the policy. “VII.
Regulation and innovation are not mutually exclusive. Crypto users
deserve safe access to emerging technologies and practices,
including NFTs, stablecoins, staking, yield-farming, and more.”
Binance is willing to work with regulators, but they also have to
play ball and let them work. The company’s tactic so far is to
aggressively pursue every and all innovations in the cryptocurrency
ecosystem. And they want to keep doing it. Or else. Related Reading
| Binance 17th Burn Sees ~$640 Million Worth Of Crypto Taken Out Of
Circulation The last two “fundamental rights” also deal with
regulations, but in a less direct way. They are also pretty
obvious. Number nine says “Marketplaces that offer derivative
instruments should be subject to the appropriate regulations.”
Number ten, that “Crypto regulation is inevitable,” and users have
the right to voice their concerns. All in all, it’s a pretty empty
text that doesn’t say much. Perfect for regulators. CZ is a genius
and Binance’s future looks bright. Featured Image: Binance's
first ever ad from this tweet | Charts by TradingView
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