In 2022, Binance claims it ramped up its regulatory compliance and user protection initiatives.
By working collaboratively with regulators worldwide, Binance reveals it has “secured registrations and licenses in 14 jurisdictions as of the end of 2022.”
To further reinforce their commitment to fight against bad actors in the space, Binance further claims that it increased its security and compliance headcount “by over 500% and became the first crypto exchange to join the National Cyber-Forensics and Training Alliance (NCFTA).”
Binance also “launched a proof-of-reserves (PoR) system to enable anyone to verify that user funds custodied on Binance are held 1:1, plus extra reserves.”
As noted in the update from Binance, the importance of regulatory compliance for our industry is “immense.”
Some “die-hard” early cryptocurrency adopters might argue that pushing for increased compliance “goes against the core ethos of the space — decentralization.”
However, Binance claims it firmly believes that working alongside governments and actively engaging in regulatory processes is “a necessary prerequisite of mass adoption that ultimately benefits all users and organizations in our ecosystem.”
Changpeng Zhao (CZ), the founder and CEO of Binance, once stated:
“Good regulations will be good for crypto. Bad regulations will be bad for crypto. Having good regulations that protect consumers while encouraging innovation is important for the growth of the industry. Having good regulations that protect consumers while encouraging innovation is important for the growth of the industry.”
The team at Binance added:
“Strong regulatory compliance and an unwavering commitment to our users’ protection is a core principle of Binance’s culture. We believe that the long-term success and integrity of the industry depends on it. Most importantly, by working proactively with regulators and law enforcement, we can ensure that user security is maximized throughout the Binance ecosystem.”
They concluded:
“As we ring in the new year and reflect on what Binance and our wonderful community has accomplished in 2022, we look forward to further contribute to the development of sensible regulatory frameworks around digital assets in 2023.”
As covered earlier this month, federal prosecutors are debating whether or not to file charges against the world’s largest crypto exchange – Binance, according to a report by Reuters. The US Department of Justice is undecided as to if they should pursue criminal charges against Binance, with an ongoing investigation that was commenced in 2018.
In the early days of crypto markets, anti-money laundering (AML) and know-your-customer (KYC) protocols were lax or missing entirely. Binance launched in 2017 – around the height of the initial coin offering (ICO) market. The thesis is that in the beginning, Binance either unwittingly or egregiously allowed bad actors to operate in crypto markets. That being said, in the past few years, Binance has moved aggressively to become compliant worldwide, pursuing regulatory approval and hiring top regulatory experts.