Binance, the leading cryptocurrency exchange, has announced that it is preparing changes to work more closely with regulators. Its CEO, Changpeng Zhao, said the company is ready to make the changes necessary to transform the exchange into a regulated financial institution in the future. This is Binance’s answer to a number of regulatory issues it has faced with regulators from around the world.
Binance is preparing regulatory changes
Binance, the world’s largest cryptocurrency exchange by trading volume, has announced that it is preparing changes to better meet regulatory requirements. The statements were made by the CEO of Binance, Changpeng Zhao, in one interview with the South China Morning Post, published Sept. 16, noting a change in the Institute’s handling of regulatory matters. He stated:
How we walk centralized exchange, we realized that we need a centralized entity to work well with regulators.
This is a clear departure from the policy Binance had previously applied, which is that it is not headquartered anywhere in the world because Bitcoin wasn’t either. However, it was the same policy that caused Binance problems with regulators complaining about the lack of registration to operate in multiple countries.
Undo the damage
The interview reveals that the recent regulatory issues the exchange has faced have completely changed Zhao’s vision of how to do things for compliance purposes. He seemed to toss aside his previous beliefs and said:
We need clear records of stakeholder ownership, transparency and risk controls. As the largest player in the industry, we have to prepare for change. We’re making changes to make it easier to work with regulators.
This focus on compliance is not just empty talk either. Binance has actively hired staff to improve its compliance game and gain control over the funds exchanged on its platform. Only yesterday did Binance have the setting by Nils Andersen-Röed, a former Europol dark web specialist, to further strengthen their investigation and audit team.
Greg Monahan, a Treasury Department criminal investigator, was also there last month appointed as Binance’s Global Money Laundering Reporting Officer to improve AML policies within the exchange.
What do you think of Binance changing to work more closely with regulators around the world? Let us know in the comments section below.
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