Binance, a global cryptocurrency exchange, has made regulatory compliance its top priority. The exchange is currently hiring to increase its legal and compliance teams. “We are moving from a technology innovator to a financial services company, so we need to be fully compliant,” Binance CEO said.
Plans for compliance with Binance Regulations
Binance will be focusing on regulatory compliance in its transition from a tech startup into a financial services company. CEO Changpeng Zhao explained this to Bloomberg TV on Tuesday.
Commenting on the crypto regulatory efforts in the United States, he said, “The United States is very mature when it comes to the crypto regulatory part. They are now leading. They have a cryptocurrency exchange on the Nasdaq that is very positive. The executive said:
Many of the new crypto regulations are going to be restrictive once they take effect. It is not surprising. We believe that the regulations will eventually adapt to market demand and hopefully improve over time.
“I believe that right now all regulators around the world view crypto as a financial instrument in one way or another,” he added.
The CEO stated that compliance is his main focus, and that he doesn’t really get involved in the day to day operations of the exchange.
We are moving from being a technology innovator to being a financial services firm, so we need full compliance.
He identified some priorities Binance will be focusing on in order to become compliant. “We need to hire a lot more people,” he began. “We need to hire people with regulatory compliance experience and very experienced people who can call on teams. We need to significantly… increase the size of our legal and compliance teams. “
Binance announced Wednesday that Greg Monahan, a former U.S. Treasury Criminal Investigator, has been hired by the organization as Global Money Laundering Reporting Officer.
Brian Brooks, the former acting currency controller, resigned earlier this month as CEO of Binance US due to “differences between strategic direction.”
Zhao explained that Binance must change its decentralized approach. “We were aiming for the decentralized organizational structure that does not work with regulators… Now we are establishing a headquarters, appropriate structures, good governance, proper audits, etc.”
In addition, the CEO said: “We need to make sure that all of our products are fully compliant… This is why we have also limited our futures contracts, our derivatives in most countries in Europe and some regions of Europe. ‘Asia.
Next, he suggested that Binance should “apply to licenses”, stressing that it was important for the company “to communicate with regulators and “request regular meetings [where we proactively inform them about what we do].”
A number of regulators have issued warnings about Binance in recent years. These regulators include those from the UK, Japan and Thailand, as well as Germany, Lithuania, Hong Kong, Thailand, Malaysia, Thailand, Germany and Cayman Islands.
What do you think about Binance’s compliance programs? Comment below.
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