- Binance CEO has called for clearer regulatory frameworks for companies to operate in the crypto space.
- He added that addressing customer interests and providing necessary safeguards remains a top priority for the exchange.
Binance has been going through tough times recently, facing regulatory backlash worldwide. More than 6 top economies including the U.K, Singapore, Japan, Germany, Thailand, etc. have started investigations into the exchange’s efforts to curtail crypto frauds.
Coming out to clear the matter, Binance CEO Chanpeng Zhao has released a new letter today, July 7. CZ said that amid recent regulatory actions, he would like to clarify Binance’s “stance and commitment” to the community. The Binance CEO also outlined the exchange’s approach and plans to deal with the ongoing regulatory.
“I believe a well-developed legal and regulatory framework in the long term will be a solid foundation that truly makes crypto essential in everyone’s daily life.”
— Binance (@binance) July 7, 2021
Binance CEO Calls for Clear Regulations
While the crypto market has matured significantly in the past, unclear regulations prove to be major hurdles for companies operating in this space. The Binance CEO also cited the need for “clearer regulatory frameworks” in different countries. CZ further added:
More regulations are, in fact, positive signs that an industry is maturing, because this sets the foundation for a broader population to feel safe to participate in crypto. I believe a well-developed legal and regulatory framework in the long term will be a solid foundation that truly makes crypto essential in everyone’s daily life.
Thus, he added that frameworks are essential to prevent misuse and fraud by bad actors in the space.
Customer Interest Remains the Top Priority
Amid the recent regulatory crackdown, Binance is also facing the heat from a lot of its partners. Several payment providers and banks have started blocking fund transfers to Binance. Following the recent crackdown by U.K’s FCA, British banking giant Barclays decided to block fund transfers to Binance. Barclays claimed it was a measure to safeguard customers’ money.
Hi there, It’s our responsibility to help protect your money. With this in mind we’ve taken the decision to stop payments made by credit/debit card to Binance until further notice, to help keep your money safe. 1/3
— Barclays UK Help (@BarclaysUKHelp) July 5, 2021
Responding to all these developments, CZ said that Binance has always ensured to keep its customer interests at their peak. As a result, the exchange has ensured stricter requirements with industry standards. It also has strict measures to prevent insider trading activities.
The exchange also employs SAFU – Secured Asset Emergency Fund – for protecting users’ assets through rigorous listing standards. In addition, CZ also noted that Binance has been working in coordination with several law enforcement agencies. This includes the U.S. Internal Revenue Service (IRS), the UK South East Regional Organized Crime Unit, and others.
By the first half of 2021, the exchange has already addressed 5,600 investigation requests, a 100% more than the same period last year.
Addressing the Regulatory Concerns Upfront
Binance U.S. – the independent subsidiary of Binance – has hired former regulator Manuel Alvarez as its chief administrative officer. Previously, Alvarez has served as the commissioner of the California Department of Financial Protection and Innovation.
Under his new role starting July 22, Alvarez will be reporting to Brian Brooks, the current CEO of Binance U.S. and former banking regulator. Speaking on this development Brooks told Bloomberg:
Bringing on someone like Manny, who was the regulator responsible for the protection of over 40 million consumers, shows not only do we take this seriously, but we’re not going to be defensive about compliance and consumer protection.
We’re going to be on the front foot, so we will hire the very best talent, the very most-senior people to run those functions for us because we agree they’re super important.
Despite all the recent hurdles, it looks like Binance stays focused on addressing the regulatory concerns.