For Binance , regulation in the crypto sector is the key to the growth of the entire industry. CEO Changpeng Zhao said this in a public letter.
The text was published after weeks of controversy that engulfed Binance. First the events in the United Kingdom with the ban on Binance Market Limited, one of the branches of Binance in the UK. Then the Cayman Islands which contested the lack of authorization to the exchange. Finally, the risk of a class action from Italy for platform problems that led a group of investors to lose the money invested.
All of this has lit a beacon on the position of the largest exchange in the world vis-à-vis regulators.
The CEO and founder Changpeng Zhao intervened directly to clarify any doubts or suspicions .
In the text, CZ wanted to clarify that Binance’s approach has always been aimed at protecting consumers. This is revealed not only by security systems such as the Secured Asset Emergency Fund (SAFU) but also by the rigorous procedures adopted by the exchange before listing, or even tutorials and the Binance Academy to educate traders.
Binance, CZ says, has also always collaborated with the authorities in case of investigations.In 2021, the exchange intervened on 5,600 suspected cases, of which the best known concerns a money laundering of 500 million dollars from operations on the dark web and cyber attacks.
All this happened in just 4 years of Binance’s life, which can still be considered a start-up.
In fact, Binance was born in 2017, at a time when the crypto industry was still immature, and the rules did not exist. Now things are changing and there is more attention to regulation . For CZ, this is good:
“More regulations are, in fact, positive signs that an industry is maturing, because this sets the stage for a larger population to feel confident about participating in the crypto sector. I believe that a well-developed legal and regulatory framework in the long term will be a solid foundation that will truly make cryptography essential in everyone’s daily life ”.
The crypto sector according to CZ can be compared to cars. In the beginning there was no highway code, there were no traffic lights and no seat belts. Laws and security measures were implemented later. The same thing is happening for cryptocurrencies.
Clarifying and building the first set of standards is critical to the continued growth of the industry. And Binance wants to be a positive contribution.
Binance: crypto regulation is like a journey
According to CZ:
“Compliance is a journey – especially in new industries like crypto. The industry still has a lot of uncertainty. We also recognize that with growth comes more complexity and more responsibility ”.
For its part, Binance has not always done everything right , the CEO acknowledges this:
“As a four-year startup, Binance still has a lot of room to grow. Binance has grown very quickly and we haven’t always got it right, but we are learning and improving every day. We hope to clarify and reaffirm our commitment to collaborate with regulators, and that we are proactively hiring more talent, putting in place more systems and processes to protect our users. ”
For this Binance plans to:
- Expand the team involved in collaboration with the authorities for the compliance of services with current laws.
- Implement partnerships to combat money laundering;
- Locate operations in order to better collaborate with local authorities, as happened in the United States where Binance.com is not active and it is possible to operate through Binance US.
Crypto synonymous with freedom
All this is a question of freedom:
“Our vision is to increase freedom and inclusion for a better human society. We strongly believe that our industry will benefit society by creating inclusive financial opportunities. We call this the “freedom of money”. “
According to CZ, this is something that can only be achieved with the support of regulators and policy makers who, however, must understand the innovations and the impact that the industry will have in the long term.
Binance is ready to do its part. The CEO concludes:
“We humbly welcome more constructive guidance to help us grow better.
We humbly welcome more capable talents and experienced consultants to join us to build better.
Me and everyone at Binance, we are ready and looking forward to being a partner in developing and following the guidelines that will help the industry grow sustainably. And together, we will help increase freedom in society in a sustainable and responsible way