According to CZ in its public letter, the regulations are a positive alternative for the crypto industry.
Cryptocurrency exchange Binance has been subject to numerous regulatory issues in recent times. The exchange has been struggling with situations of this kind in Thailand and the Cayman Islands. Japan is another country added to the list.
The United Kingdom also appears on the list. That is why the bank Barclays blocked the payments of its clients to the exchange.
In response, Binance CEO Changpeng “CZ” Zhao stepped out in a public letter titled: “Reflecting on Progress and the Way Forward,” in which he compared recent pressure from regulators against his exchange business to the early development of the automobile.
CZ said that the adoption and development of crypto had many similar features with automobile regulations, especially when it came to laws and guidelines developing themselves along the way.
In the letter, the CEO also reiterate that his exchange had requirements to use its platform. In addition, he highlighted that in July, an emergency insured asset fund (SAFU) was designed to protect users’ assets and listing standards.
5,600 Research Requests
The letter also says the exchange protects users through its work with law enforcement agencies such as the US Internal Revenue Service (IRS), the UK South East Regional Organized Crime Unit, and others. to fight against cyber-crimes like money laundering, terrorist financing, and scams.
CZ said in the letter:
“So far in 2021, we have already completed the assistance of 5,600 investigation requests, which is 100% more than in 2020. Recently we supported the takedown of a prolific cybercriminal network responsible for laundering more than $ 500. million in damage from dark web operations and high-profile cyber-attacks.”
Likewise, CZ believes that more regulations are positive signs that an industry is growing up because this paves the way for more population to feel safe, and participate in crypto. The CEO also assures that a well-developed legal and regulatory framework in the long term will serve as a solid foundation that would make cryptocurrencies an essential asset in daily life.
The CEO highlights Some Important Points in the Letter:
Compliance is a journey, especially when it comes to digital currencies. The industry is still uncertain so we recognize that with growth comes more complexity and even more responsibility.”
The CEO also talks about the rapid growth that Binance has experienced, and that they have not always done everything exactly right, but they are learning from mistakes and improving every day. The CEO said they want to clarify and reiterate their commitment to join efforts with regulators and proactively hire more talent.
The exchange also considered setting the implementation of more systems and processes to protect users.
The CEO is Moving Forward
CZ spoke about the expansion of the international compliance team. He said on the matter that they have increased their international compliance team and the advisory council by 500% since last year.
Relevant appointments include the former FATF executive secretary Rick McDonell and former head of the Canadian delegation to the FATF Josée Nadeau as regulatory and compliance advisers. Max Baucus, former US senator for Montana and US ambassador, will take the lead in China.
With all these plans, Binance intends to increase its team by the end of the year, with qualified and experienced advisors to add assistance and support.
By: Jenson Nuñez