Despite its collaboration in specific cases, the exchange has not released much information, Bryan Benson said. One of the problems with the growth of that platform is lower privacy for its users.
The operations director of the Binance exchange in Latin America, Bryan Benson, recently received requests from the authorities of each country. He said the firm has not yet provided information about its users to tax entities, but he believes that will happen soon.
Benson thinks Latin American tax authorities will soon request such data from Binance. Regarding Argentina, the executive said that he had no information on that specific case.
Binance has had legal compliance issues that earned it warnings from regulatory entities. That has caused the cryptocurrency exchange operating difficulties in several countries. For that reason, the company stated that it would strive to comply with the laws of each nation.
According to Benson, Binance is leaning more towards regulations to meet the demands of those environments. He confessed that he did not like transmitting that information very much but had to do it.
The executive said that the exchange has cooperated in investigations and specific audits but has not unreasonably given much information.
How Binance Sees Security and Privacy
Binance has requested full KYC (Know-Your-Customer) compliance from its users for a short time. That is in line with its premise of increasing security on the platform and preventing illegal practices. However, that contradicts the philosophy of freedom and privacy that exists in the cryptocurrency ecosystem.
Benson confessed that he always wonders how to combine security and privacy, which are two seemingly opposites. He responded that the products that go the most towards regulation are precisely the least decentralized. He expressed that those who want more privacy should look for other products in the ecosystem.
He argued that one of the growth problems on exchanges is requesting so much data from users. In addition, he highlighted that other platforms are trying to integrate with banks and financial entities under the regulator’s magnifying glass.
The Opinion of Binance about Regulatory Pressures
Changpeng Zhao, CEO of Binance, has said that Binance is committed to working with the regulators and legislators as the cryptocurrency ecosystem grows. According to the executive, the objective is to develop policies that protect consumers, encourage innovation, and advance the industry.
He has also explained that some countries like the UK do not allow the exchange to offer some products. They have even warned about the alleged risks of trading crypto assets.
The authorities of several countries have restricted the operations of the exchange led by Changpeng Zhao. For example, Binance cannot provide its services in the United Kingdom, Cayman Islands, Thailand, Japan, and Malaysia.
Amid those limitations to operate, Zhao considers it necessary to change the direction of the platform. Besides, he has expressed that he believes that the company should adapt to the new regulatory requirements.
Bryan Benson, operations director of Binance for Latin America, has mentioned that the regulations do not surprise them. He thinks those measures would be a stage in the process towards the mass adoption of cryptocurrencies.
Many world authorities are afraid to use crypto assets, which has led them to adjust their regulations. Several countries have prevented exchanges from operating and have even warned people not to invest in them.
By Alexander Salazar
