By hiring Meirelles, Binance shows that it takes compliance with regulators more seriously after public and legal scrutiny. The executive said the firm provided the information recently requested by the authorities, pointing out that many people already have access to it.
Binance, the largest cryptocurrency exchange by trading volume, recently hired renowned Brazilian economist Henrique Meirelles as an advisor.
Meirelles served as President of the Central Bank of Brazil between 2003 and 2011 and as Minister of Economy between 2016 and 2018.
After appointing Henrique Meirelles to its global advisory board, the firm will provide further details on the initiative in the short term.
Binance Seeks to Comply with Regulations Following Legal Scrutiny
By hiring a famous former government official, Binance shows that it takes compliance with regulators worldwide more seriously. This decision follows the public and legal scrutiny it has faced more than ever.
The cryptocurrency exchange is discussing the creation of a digital city modeled on the virtual free zones of Dubai with Nigeria. It would become the first in West Africa to provide a legal framework and tax incentives compatible with cryptocurrencies.
More than 22 million people own cryptocurrencies in Nigeria, making it a promising market for the industry.
The US federal prosecutors recently requested Changpeng Zhao to submit information concerning money laundering data and communications from the platform. The latter included messages between the CEO of Binance and other executives in 2020.
This request was part of an investigation to determine whether Binance complies with US financial crime laws by the Department of Justice.
The executive said the firm provided the information requested by the authorities, pointing out that many people have access to the messages anyway.
Changpeng Zhao Explains that Binance is Not a Chinese Company
On September 1st, Changpeng Zhao reacted to an article describing Binance as a Chinese-origin cryptocurrency exchange. He wondered why they said that, highlighting that he has been a Canadian citizen for over 30 years.
Then Zhao shared his thoughts on why those comments are racist, defamatory, and harmful. He quashed rumors that an early employee of Binance, who was also his friend, was a Chinese owner or official.
Changpeng Zhao said it was easier to have a Chinese citizen as a legal representative due to the restrictive laws on foreigners in China. Guangying Chen ran the administrative office for the cryptocurrency exchange, a common practice in the Asian country. Finally, he clarified that she did not own Binance and was not a secret agent of the Chinese government.
The CEO of Binance explained that Guangying had to leave China in 2017, which was a tremendous sacrifice. She still has to deal with conspiracy theories about her that some Chinese media outlets continue to spread.
Meanwhile, Bitcoin is trading at around USD 19,963 and has accumulated a 1.0% gain over the last week. While its daily trading volume is above USD 29.72 billion, its market capitalization is about USD 382.15 billion, according to CoinGecko.
By Alexander Salazar
