CZ, Binance’s CEO, Touches on Recent Regulatory Crackdowns and Calling Regulations as a Positive Sign

Changpeng Zhao (CZ), the CEO of Binance, addresses the recent regulatory clout and sees the recent regulatory spate as a responsibility that comes as the crypto market grows.

By
Chung Yee
on
July 10, 2021
Category:
BSC News

With Great Power Comes Great Responsibilities

The road ahead for the crypto market is being paved as the industry grows. CZ, the CEO of Binance Group, likened the development in the crypto world with that of the car in a blog post on July 6. Traffic laws and rules were developed as cars started to hit the road.

In a letter reflecting the four-year journey on Binance’s official website, the entrepreneur sees Binance’s role as a significant contributor to the framework of compliance for the crypto asset market. 

Source

In a recent spate of regulatory clampdowns, Binance has been actively positioning itself to handle the regulatory challenges that come in its way. Binance was forced to cease offering services to users in Ontario, Canada, on June 25th. The British bank Barclays stopped users from making payments to Binance commencing on July 5th. The exchange cited a regulatory notice issued by UK’s Financial Conduct Authority (FCA). The list goes on... 

In his letter, CZ reflected on Binance’s journey in the crypto world and touched on the recent regulatory clampdowns as Binance celebrates its fourth anniversary. He reminisced about the early days when there were only a few early adopters, and there were no clear standards. Today the crypto market is a trillion-dollar industry with a lot of amazing growth potential. 

4 Years of Pioneering Growth and the Road Ahead

Binance is one of the pioneers in the crypto market. The Binance chief outlined the company’s priority before clear regulatory guidelines. Binance has shared aspiration with the regulators to ensure that the users’ best interests are protected. Four years have passed. The company and the crypto market have grown by leaps and bounds. The step forward is planning how to meet compliance standards and push innovation to the forefront. 

Source: the Securities and Exchange Commission (SEC) is one of the financial watchdogs that will shape the future of the crypto market

Binance has outlined three steps that it is taking to improve its compliance. First, increase the compliance team by hiring the right people with experience to guide the company. Secondly, to force partnerships that will help implement new controls and regulation technology into its operating procedures and finally, to localize the operation to meet the local regulations.   

The three major steps will address any regulatory concerns by putting the proper policy framework for Binance in its march towards a new era of crypto-asset adoption. It is also recognized that a one-size-fits-all approach to regulation is no longer sustainable today as different jurisdictions have varying and diverse compliance criteria. The roadmap ahead is an affirmation of the positive steps taken by Binance and the understanding that the crypto market is fluid and dynamic as regulatory concerns may shift as the market develops. 

Celebrating Binance’s 4th Anniversary

The Binance community largely fuels the success behind the company. To recognize their community’s contributions, Binance will be hosting a list of events as a tribute to those that have made it possible. A 3-hour concert titled ‘Build to the Moon’ is slated for July 14. The event will feature events, including musical performances, an AMA with CZ, and exclusive Binance merchandise giveaways. The winners of the 2021 Binance Awards will also be revealed.

Source 

Apart from throwing a massive party, Binance is also hosting challenges with more than $1.8 million to be won. Participants can visit the challenge landing page to unlock the mission and complete the challenge. The prizes are in the form of CHR, CHZ, DATA, DEXE, FRONT, and TRX tokens, in addition to 1,050 limited edition Non-Fungible Tokens.  


Anticipating the Future of Crypto

There is no denying that crypto has a place in our lives. It will continue to grow and play an integral part. Binance, as the leading crypto marketplace provider, is one of the industry leaders that can help shape the industry. Regulation is here to stay, and it will evolve as the crypto market evolves because regulations should be reactive and responsive. While CZ may wish for a clear set of regulations, this may be a distant dream until the crypto market matures and finds its equilibrium.  

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Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance.

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