Binance, the world’s largest cryptocurrency exchange, has announced that it is ready to make adjustments that will enable it to cooperate more closely with regulators.
Changpeng Zhao, the company’s CEO, claimed that the company is prepared to make the necessary changes to convert the exchange into a regulated financial institution in the future. This is Binance’s response to a number of regulatory issues with regulators worldwide.
Binance Prepares to Make Changes That Are Regulator-Friendly
Binance, the world’s largest cryptocurrency exchange by trade volume, has announced that it is in the process of making changes to better comply with regulatory standards. Binance’s CEO, Changpeng Zhao, made the remarks in an interview with the South China Morning Post published on September 16, in which he hinted at a shift in the institution’s approach to regulatory matters. He stated as follows:
As we run a centralized exchange, we have come to realize that we need to have a centralized entity to work well with regulators.
This is a significant reversal from Binance’s previous position, which stated that the company was not based anywhere in the globe because Bitcoin was not. However, it was this same policy that landed Binance in hot water with regulators, who protested about the company’s lack of registration to operate in a number of countries.
Reversing the Harm
According to the interview, the exchange’s recent regulatory issues have fundamentally altered Zhao’s understanding of how things should be done for compliance purposes. He appeared to abandon his former convictions, stating:
We must keep accurate records of stakeholder ownership, transparency, and risk management. As the industry’s largest player, we must prepare for the transformation. We are making adjustments to make working with regulators easier.
This turn toward compliance is also not mere rhetoric. Binance has been actively recruiting human resources in order to bolster its compliance efforts and tighten control over the monies traded on its platform. Binance announced Monday the addition of Nils Andersen-Röed, a former Europol Dark Web specialist, to their investigations and audits team.
Additionally, Greg Monahan, a former US Treasury criminal investigator, was appointed as Binance’s Global Money Laundering Reporting Officer last month, with the goal of strengthening the exchange’s AML rules.
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