The CEO of听Binance听has responded to the regulation crackdown with a promise to double the size of the crypto exchange鈥檚 compliance team.听
CZ also likened the maturing market to the introduction of the motorcar and welcomed the prospect of increased regulation听as a 鈥�foundation for a broader population to feel safe to participate in crypto鈥�, while admitting that听Binance听鈥渉asn鈥檛 always got everything right鈥�.听
Watchdog the听Financial Conduct Authority听recently听banned听it听from performing any regulated activities听鈥� such as听futures, options, stock tokens, savings accounts and lending听鈥撎齣n听the UK.听However,听users of the popular platform can still buy and sell cryptocurrency,听as this is not regulated听for now.听
The FCA also issued a consumer warning about Binance.com, specifically to be wary of adverts promising high returns on crypto听investments.听A similar warning about the platform was issued听to US consumers by regulator the SEC in April听while听Japan’s Financial Services Agency听has twice听warned听the company听that it is operating there without permission.听
Then this week听UK bank Barclays stopped customers from transferring funds to听Binance听with the reasoning of “helping you keep your money safe”.听
鈥淲e are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries,鈥澨�wrote CZ听in a blog post.听鈥淢ore regulations are, in fact, positive signs that an industry is maturing, because this sets the foundation for a broader population to feel safe to participate in crypto.听听
鈥淚 believe a well-developed legal and regulatory framework in the long term will be a solid foundation that truly makes crypto essential in everyone鈥檚 daily life.听听
鈥淭he adoption and development of crypto has many parallels with that of the car. When the car was first invented, there weren’t any traffic laws, traffic lights or even safety belts. Laws and guidelines were developed along the way as the cars were running on the road. These are frameworks and laws we take for granted today that allow this powerful technology to be used widely and safely.听听
鈥淐rypto is similar in the sense that it can be accessible for everyone, but frameworks are required to prevent misuse and bad actors. Clarifying and building the first set of standards is critical for the industry鈥檚 continued growth.鈥�听
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He continued: 鈥淎s a four-year-old听startup,听Binance听still has a lot of room to grow.听Binance听has grown very听quickly听and we haven’t always got everything exactly right, but we are learning and improving every day.听听
鈥淲e hope to clarify and reiterate our commitment to partner with regulators, and that we are proactively hiring more talent, putting in place more systems and processes to protect our users.鈥�听
He claimed that听Binance听has grown its听international compliance team and advisory board by 500% since last year, adding a pledge to听double it again by the end of the year.听听
“Notable appointments include former FATF Executive Secretary Rick McDonell and former Head of the Canadian delegation to the FATF Jos茅e Nadeau as compliance and regulatory advisors, as well as Max Baucus, the former US Senator for Montana and US Ambassador to China, to provide high-level guidance – these are the first of many high-profile additions to our team,鈥� he wrote.听
CZ said this year alone听Binance听has听assisted 5,600 investigations into听cybercrimes such as money laundering, terrorist financing and scams, recently听supporting the takedown of a prolific cybercriminal ring responsible for laundering over $500听million worth of damages from dark web operations and high-profile cyberattacks.听听
鈥淥ur vision is to increase freedom and inclusion for a better human society. We firmly believe that our industry will benefit society through the听creationing听of inclusive financial opportunities,鈥� he continued.听
鈥淚n our first year as a company, we set up the industry鈥檚 first charity foundation听Binance听Charity, which has contributed $15m听to over 20 projects for education, sustainability, and other causes.听
鈥淏ut this lofty vision won鈥檛 be possible without the support and guidance of regulators and policymakers who understand that innovation has the most long-term sustainable impact when tempered with frameworks to protect all participants.鈥�听