The largest platform for trading cryptocurrencies and digital assets, Binance, which pressured by financial regulators around the world, plans to obtain all the necessary licenses. Changpeng Zhao (CZ), CEO of the exchange, announced plans for major changes that could improve relations with financial regulators.
So, Binance launched a global campaign to obtain licenses from local regulators; including in the Asia-Pacific region, EMEA and Latin America. Major efforts include obtaining licenses at the grassroots level. Working with regulators as new crypto rules introduced, and intensifying efforts to ensure KYC compliance.
According to CZ, the motivation behind this initiative is to allow the exchange to continue to adapt to the new rules in the best interest of its clients.
However, Binance’s approval in jurisdictions such as North America, Europe and Latin America will open up its high liquidity benefits to institutional investors. And, in turn, will increase the cryptocurrency adoption.
Regulators are paying closer attention to the cryptocurrency industry
Governments and financial supervisors are paying closer attention to the cryptocurrency and digital asset industry. Oftentimes, the rules and policies they set create problems for exchanges like Binance as their success has been achieved in an unregulated arena. The head of Binance said the platform intends to establish a regional headquarters with regulatory approval. Which means centralizing its operations.
CZ mentioned that the current situation is not one in which he could resign. However, if the need arises, Changpeng Zhao will hand over the reins of the largest cryptocurrency exchange to someone who can handle the difficulties better than him. According to CZ, Binance is now striving to become a regulated financial institution. But the CEO of the exchange is also open to the search for a successor with a strong regulatory base.
Binance’s plans and previous clashes with regulators
In the future, Changpeng Zhao wants to see his brainchild Binance as a full-fledged financial institution; with all the necessary licensing papers. It is worth noting that CZ’s statements were made against the backdrop of numerous inspections of the exchange by regulators. Also, now the platform is suspected of using it for illegal activities, in particular for money laundering. However, so far there is no evidence of such charges.
Recall that these are not the first attempts by CZ and Binance to find a common language with global regulators in the field of cryptocurrencies and digital assets. Earlier this month, the exchange halted one of its new services, which allowed trading exchange tokens. The platform took such a step due to the close attention of regulators, in particular the German Financial Supervision Authority. Also this month, Binance lowered its maximum leverage to 20X to minimize consumer protection concerns. As we previously reported, Binance has lowered daily withdrawal limits for accounts that have not passed full verification from 2 BTC to 0.06 BTC.