After several problems that the exchange has started to have in Italy, Hong Kong, the Cayman Islands, and beyond, Binance has announced that it wants to solve its compliance problems. For this reason, it is taking several initiatives to comply with the various regulations of the different countries in which it operates.
Co-founder and CEO Changpeng CZ Zhao recently stated that the exchange is working on aligning with regulatory standards and providing a better experience to its users. Furthermore, the CEO mentioned that cryptocurrency regulations are still evolving in many countries around the world, and everyone is still discovering the best way forward in this area.
Binance’s chief legal officer, Hon Cheung Ng, added that Binance wants to cooperate with regulators, especially regarding compliance issues involving sharing specific user data.
In fact, the exchange company is also committed to protect users through specific work together with law enforcement agencies, such as the US Internal Revenue Service (IRS) or the UK South East Regional Organized Crime Unit, to try a crackdown on cybercrimes such as money laundering, terrorist financing or scams, so much so that in 2021 alone they claim to have already responded to 5,600 requests for investigations (100% more than last year).
Binance’s plans beyond compliance issues
CZ also stated that among the company’s plans is to become a regulated financial institution and ensure compliance with local regulations; it may be necessary to establish regional offices to deepen communication with authorities.
Some initiatives have already been taken, such as limiting leverage to 20x for new users and retroactively extending this limit to all new accounts opened in the last 60 days.
They also announced their intention to reduce the offer of derivative products in Germany, Italy, and the Netherlands and impose limitations on Hong Kong users.
The latest API service update, which restricts the creation of new API keys to verified accounts, will go into effect today to ensure a safer and fairer trading environment for all and remain compliant with the latest industry requirements.
Recently introduced infrastructure improvements include the release of Online Chat 5.0 to meet user demands, with the introduction of an artificial intelligence-based bot that helps users solve common problems immediately, as well as a tripling of Customer Service staff. “Self-service” resources such as FAQs and tutorials have also been expanded.
The company also claims to have strict insider trading policies, such as prohibiting active trading of assets within 30 days, having a Guaranteed Asset Emergency Fund (SAFU), and having strict listing standards.
Binance also stated that to date, it is the only cryptocurrency trading platform with a responsible trading program, such as through limits and protections for higher-risk products, to encourage responsible trading.