Binance cryptocurrency exchange CEO Changpeng “CZ” Zhao compared the attention of global regulators to his company with the development of the automotive industry, where “laws and requirements were developed on the fly.”
“We are seeing more widespread adoption of cryptocurrencies globally and the need for clearer regulatory frameworks across countries,” CZ wrote in an open letter this Wednesday. “In fact, increased regulation is a positive sign.”
Authorities in several jurisdictions, including the Cayman Islands, Thailand and Singapore, have opened investigations into Binance, and recently the blocking of incoming transfers in Europe has been added to the exchange’s problems. Zhao claims that Binance is currently “the only cryptocurrency exchange platform using a Responsible Trading Program.” As a justification, he points to educational materials, restrictions on trading high-risk products, the presence of a SAFU fund to compensate users for losses from hacks and other abnormal situations, as well as strict policies regarding insider trading that prohibit the active circulation of new cryptocurrencies for 30 days.
He also recalls Binance’s cooperation with law enforcement agencies in various countries:
“In 2021, we have already responded to 5,600 inquiries under ongoing investigations, which is 100% more than in 2020. One of the most recent such cases was assistance in the capture of members of a cybercriminal group responsible for laundering more than $ 500 million received from activities in the dark web and high-profile cyberattacks. ”
Zhao calls legal compliance a continuous process, especially in a new industry like cryptocurrency. He admits that in the four years of its existence, Binance “has not always arranged everything exactly as it should, but is learning and developing every day.”
As part of further improving compliance policies, Zhao identifies three areas:
Expansion of the international compliance team;
Increase in already robust agreements in this area;
Business adaptation to the requirements of local regulators.
“We know we are living a tipping point with the entire industry. These are just the first steps. We are committed to increasing freedoms and expanding financial services to build a better human society. We strongly believe that our industry will benefit society by creating more inclusive financial opportunities. But realizing this vision is impossible without the support and direction of regulators and legislators who understand that innovation has the most long-term sustainable impact when supported by a legal framework that protects the interests of all stakeholders, ”adds CZ.
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