Binance’s global cryptocurrency exchange has made compliance a top priority. The stock market is preparing for admission to “significantly” increase legal and compliance teams. “From a technology innovator to a financial services company, we must fully deliver,” said the Binance CEO.
Binance Compliance Plans
Binance will focus on compliance when switching from a startup technology company to a financial services company, CEO Changpeng Zhao (CZ) explained in an interview with Bloomberg TV on Tuesday.
He said of America’s crypto regulatory efforts: “America is very mature in crypto regulation. Now they are driving. They have a cryptocurrency exchange on the Nasdaq, which is very positive. The executive continued:
When the new encryption rules appear, many of them will be restrictive. In some ways, this is to be expected. But over time, we believe regulations will adapt to market demand and hopefully improve.
“I think all the regulators in the world now see cryptocurrencies as financial instruments in one form or another,” he continued.
The CEO said he spends most of his time “probably 80% or more” on compliance, noting that he “doesn’t really participate in the day-to-day running of the stock market.”
We are moving from being a technology innovator to a financial services company, so we must fully comply.
He named some of the priorities that Binance is focusing on meeting. “We need to hire a lot more people,” he began. “We need to hire people who have experience in law enforcement and high-level people who can incorporate teams. We need to significantly increase the size of our compliance legal teams. “
Binance announced on Wednesday that it has hired Greg Monahan, a criminal investigator for the United States Treasury, to join the organization as a Global Money Laundering Reporting Officer (GMLRO).
Earlier this month, Brian Brooks, a former controller of the currency, resigned as CEO of Binance US due to “differences in strategic directions.”
Zhao also explained that Binance must give up its idea of decentralization. “We have looked for a decentralized organizational structure that does not work with the regulators … Now we are creating a center, the right structures, the right governance, the right controls, etc.”
In addition, the CEO said: “We need to ensure that all of our products are fully compliant … That is why we restrict our futures and derivatives in much of Europe and parts of Asia.”
He then said that Binance should “apply for a permit”, emphasizing that “it is very important” that the company “communicate with regulators” and “request regular meetings where we proactively inform them about what we are doing.”
Various regulators around the world have issued warnings about Binance. These include regulators in the UK, Japan, Malaysia, Thailand, Germany, the Cayman Islands, Lithuania, and Hong Kong.
What do you think of Binance’s compliance plans? Let us know in the comment section.
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