September 30, 2022

Binance’s Road To Compliance Continues With A List Of Rights For Crypto Users

4 min read

After a few scares, Binance’s offensive moves begin. Regulators around the globe surrounded the greatest cryptocurrency exchange by market capitalization. Their legal representatives were working overtime. There were pitfalls all around. A couple of months later on, Binance is the one setting the rules. They’re the ones inviting the regulators to the castle. They’re trying to set the tone and specify what a completely certified cryptocurrency exchange is.

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The campaign started with Binance’s very first traditional media ad in the business’s history. A full-page in the Financial Times and a website to match it. “Crypto belongs to all of us. However there’s still work to be done if we want this development innovation to enter into our daily lives. Like seat belts in a car, a more regulated crypto market supplies higher defenses for everyday users,” says the ad’s copy. Precisely what the regulators want to hear.

How #Binance strategies to invite the next billion crypto users. pic.twitter.com/0oigvdgQCj

—– CZ 🔶 Binance( @cz_binance )November 16, 2021 What Did Binance Say To The Press?

The company’s CEO, Changpeng Zhao AKA CZ, spoke to Bloomberg to spread the news. About the goal of their project, he told them:

” We have been communicating with many regulators worldwide. As a brand-new industry, we like to share what we think is important for users.

We want to put this out there so everyone understands from our position what’s important. We currently shared this — — not in this format — with various regulators, and we want the users to referred to as well. We have a much more comprehensive framework that we share with regulators straight.”

He also tells them that the regulators were skeptical of Binance in the beginning, but that in-person meetings have assisted win them over. “When people see me face to face, they say, “appearance, CZ is extremely sensible, extremely calm, not an insane man.” In an associated topic, when they ask him if the users leave as they tighten up compliance, CZ responded to “There is a small group of individuals who do not like to do know-your-customer rules, get validated etc. It’s a free enterprise. There are other platforms they could use.” And after that claims, “We only lose 3% of the users.”

BNB rate chart on FTX|Source: BNB/USD on TradingView.com
Emphasizes From The “10 Fundamental Rights For Crypto Users”

Since the focus of this short article is policy and compliance, let’s concentrate on the three rights that touch the topic. For those thinking about the rest of the text, here’s the site. Binance essentially assures monetary services, security, and privacy for everybody.

” II. Market participants have a duty to deal with regulators and policymakers to shape brand-new standards for crypto assets. Smart guideline motivates development and helps keep users safe.”

Binance pledges to deal with regulators and invites them to the castle. Does the part about “clever guideline” contain a light risk? If it does, it leaves space for plausible deniability.

” III. Accountable crypto platforms have an obligation to protect users from bad actors and carry out Know Your Customer (KYC) processes to prevent monetary crimes.”

Once once again, Binance guarantees to carry out KYC to all its users. The platform utilized to let unproven accounts negotiate small amounts. As soon as the regulators started knocking at their door, Binance announced KYC for everybody. And here, they double down on the policy.

” VII. Guideline and development are not mutually unique. Crypto users deserve safe access to emerging technologies and practices, consisting of NFTs, stablecoins, staking, yield-farming, and more.”

Binance is willing to work with regulators, however they also need to play ball and let them work. The business’s strategy so far is to strongly pursue every and all innovations in the cryptocurrency ecosystem. And they want to keep doing it. Otherwise.

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The last 2 “fundamental rights” likewise deal with regulations, however in a less direct way. They are also pretty apparent. Number nine states “Marketplaces that use acquired instruments should go through the proper regulations.” Number 10, that “Crypto regulation is inevitable,” and users have the right to voice their issues.

All in all, it’s a pretty empty text that does not say much. Perfect for regulators. CZ is a genius and Binance’s future looks intense.

Included Image: Binance’s first ever advertisement from this tweet|Charts by TradingView