Binance CEO Changpeng Zhao stated his take on the recent regulatory crackdown Binance is facing. In a blog post, Zhao explains Binance aims to comply with local regulations. However, he also stated cryptocurrency was a nascent industry, and there are a lot of uncertainties in the field. Binance has been getting a slew of warning from governments all over the world for failing to comply with specific regulations.
Changpeng Zhao States Compliance Is a ‘Journey’
Changpeng Zhao, CEO of Binance, finally issued a statement on its take about the recent regulatory crackdown the exchange faces. In a letter published yesterday, Zhao describes how Binance is gradually adapting to regulations all over the world. But he recognizes that Binance “haven’t always got everything exactly right.” Zhao further stressed:
Compliance is a journey – especially in new sectors like crypto. The industry still has a lot of uncertainty. We also recognize that with the growth comes more complexity.
Binance is facing opposition from local governments due to its failure in complying with local regulations. This is known as localization, and it is one of the most complex matters international companies face due to the costs associated with it. Zhao declared:
We are committed to being compliant with appropriate local rules wherever we operate. We have seen regulators take a more active interest in the industry as-a-whole as the industry goes main-stream.
At the same time, Zhao called for clearer regulations. In his view, more regulations are a positive development for the industry, but these need to be easier to follow. This makes more people confident in the industry and will more capital to the market.
Binance’s Compliance Plan
Zhao stated Binance is taking tangible steps to ramp up compliance. Among these is the adoption of Traveler, a system to comply with the travel rule proposed by the Financial Action Task Force. The system created by Ciphertrace, a blockchain analytics company, automatizes this task. The letter also states Binance Global Compliance team has grown 500% in just one year, achieving partnerships with institutions like United Nations Office on Drugs and Crime (UNODC) and Interpol.
This is the first clear response that Binance issues regarding the recent warnings emitted against the exchange. Regulators from Japan, U.K., Cayman Islands, and Thailand have called out the exchange for offering trading services without registration. And more recently, banks like Barclays have started blocking payments and wires to Binance to protect customers.
What do you think about Changpeng Zhao’s answer to the recent actions against Binance? Tell us in the comments section below.