Binance, the leading cryptocurrency exchange, has announced that it is preparing changes to be able to work more closely with regulators. Its CEO, Changpeng Zhao, said the company is ready to implement the necessary revisions to transform the exchange into a regulated financial institution in the future. It’s Binance’s response to a series of regulatory issues it faces with regulators around the world.
Binance Prepares Favorable Changes For Regulators
Binance, the world’s largest cryptocurrency exchange in terms of trading volume, has announced that it is preparing changes to better meet the demands of regulators. The statements were made by Binance CEO Changpeng Zhao in a maintenance with the South China Morning Post published on September 16, where he hinted at a change in how the institution will handle regulatory matters. He stated:
As we run a 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 enforced, claiming that it was not headquartered anywhere in the world because Bitcoin was not either. However, it was this same policy that created problems for Binance with regulators, who complained about the lack of registration for operation in several countries.
Undo the damage
From the interview, it is clear that the recent regulatory issues facing the exchange have completely changed Zhao’s view of how things should be done for compliance purposes. He appeared to reject his previous beliefs, stating:
We need to have clear records on ownership, transparency and stakeholder risk controls. As the biggest player in the industry, we need to prepare for change. We’re making changes to make it easier to work with regulators.
Nor is this pivot to compliance just empty talk. Binance has actively hired human resources to step up its compliance game and tighten control over funds traded on its platform. As recently as yesterday, Binance announced the hiring by Nils Andersen-Röed, a former Europol Dark Web specialist, to further strengthen their investigation and audit team.
Additionally, last month Greg Monahan, who was a U.S. Treasury criminal investigator, was appointed as Binance’s Global Money Laundering Reporting Officer, to improve anti-money laundering policies within the exchange.
What do you think of Binance’s shift to work more closely with regulators around the world? Tell us in the comments section below.
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