In a blog post on Binance today, founder Changpeng Zhao, or CZ, has issued a call for global crypto regulation to “help ensure the industry will continue to innovate responsibly while ensuring a healthy path forward for future growth.”
Crypto is deemed as lacking sufficient regulation in certain markets, falling short of investor protection criteria. In the US, there have been growing calls for greater regulation while industry participants grouse about the lack of clear-cut rules or, even worse, regulation by enforcement.
CZ states:
“…we’ve announced a series of fundamental rights for crypto users globally, across newspapers and print. These rights are meant to spark an open conversation about an important set of challenges and opportunities facing the crypto industry. At Binance, we’ve always been relentlessly user-focused, and an important part of that comes down to our approach to user protection.
The industry has seen an influx of new users with each successive market high, and it is up to industry participants to ensure each user has an experience that’s as safe and secure as possible. Though your priorities may (and probably will) differ, with the release of these fundamental rights, we hope to provide a voice to those who have traditionally been more on the sidelines when it comes to high finance. These are rights that we think will help safeguard the crypto experiences of everyday users, and we welcome all opportunities to engage in open dialogue with industry leaders, regulators, policymakers and users.”
On a separate website, the 10 Fundamental Rights for Crypto Users, are posted. They are as follows:
I. Every human being should have access to financial tools, like crypto, that allow for greater economic independence.
II. Industry participants have a responsibility to work with regulators and policymakers to shape new standards for crypto assets. Smart regulation encourages innovation and helps keep users safe.
III. Responsible crypto platforms have an obligation to protect users from bad actors and implement Know Your Customer (KYC) processes to prevent financial crimes.
IV. Privacy is a human right, and personally identifiable information (PII) data should be subject to strict levels of protection.
V. Crypto users have the right to access exchanges that keep their funds secure, in safe custody with comprehensive deposit insurance.
VI. Healthy markets should maintain a robust level of liquidity to ensure a stable and frictionless trading environment.
VII. Regulation and innovation are not mutually exclusive. Crypto users deserve safe access to emerging technologies and practices, including NFTs, stablecoins, staking, yield-farming, and more.
VIII. Closing the knowledge gap is essential when it comes to crypto. Users have the right to accurate information on crypto assets, without fear of falling victim to unfair or deceptive advertising.
IX. Marketplaces that offer derivative instruments should be subject to the appropriate regulations. This ensures all users meet eligibility requirements and that their transactions are fairly settled.
X. Crypto regulation is inevitable.* Users have the right to share their voice on how the industry should evolve with their blockchain platform of choice.
CZ calls on other large crypto marketplaces to join in and support the call.
So is it too little too late? Will regulators continue to tighten the regulatory vice on digital assets, many of which are deemed to be securities? Or will global regulators come together with a joint initiative? It’s an interesting approach and a long shot.
