After the various problems that the exchange has started to have in Italy, Hong Kong, the Cayman Islands and beyond, Binance has announced that it wants to solve the compliance problems, and for this reason it is taking various initiatives to comply with the various regulations of the different countries in which it operates.
Co-founder and CEO, Changpeng CZ Zhao , recently said the exchange is working to align with regulatory standards and to provide a better experience for its users. Furthermore, the CEO recalled that in many countries around the world, cryptocurrency regulations are still evolving and in fact everyone is still discovering the best way forward in this sector.
Binance’s chief legal officer Hon Cheung Ng added that Binance wants to work with regulators, particularly regarding compliance issues involving sharing some user data.
In fact, the exchange company is also committed to protecting users thanks to a specific work together with law enforcement agencies, such as the United States Internal Revenue Service (IRS) or the UK South East Regional Organized Crime Unit, to search to crack down on cybercrimes such as money laundering, terrorist financing or scams, so much so that in 2021 alone they claim to have already responded to 5,600 investigation requests (100% more than last year).
Binance’s plans beyond compliance issues
CZ also said that the company’s plans are to become a regulated financial institution , and that to ensure compliance with local regulations it may be necessary to establish regional offices to deepen communication with authorities.
Furthermore, some initiatives have already been taken, such as the 20x leverage limitations for new users, and the retroactive extension of this limit to all new accounts opened in the last 60 days.
They also announced plans to reduce the supply of derivative products in Germany, Italy and the Netherlands, and to impose restrictions on Hong Kong users as well .
The latest API service update comes into effect today, which among other things restricts the creation of new API keys to verified accounts, to ensure a safer and fairer trading environment for everyone, and to stay compliant with the latest requirements. of the sector.
Among the infrastructure improvements recently introduced is the release of Online Chat 5.0 , to satisfy user requests, with the introduction of an artificial intelligence-based bot that helps users immediately solve the most common problems, as well as tripling of the Customer Service staff. Self-service resources such as FAQs and tutorials have also been expanded.
The company also claims it has strict insider trading policies, such as banning active asset trading within 30 days, having a guaranteed asset emergency fund (SAFU), and having strict listing standards.
Binance also claimed to be the only cryptocurrency trading platform to date with a responsible trading program, for example thanks to limits and protections for higher risk products, to encourage responsible trading.