- Binance CEO Changpeng Zhao has addressed the regulatory crackdowns that have hit the exchange in recent weeks
- Zhao compared the growth in the crypto sector to the growth of the car in its early days
- Binance is taking steps to improve its compliance and regulatory obligations according to Zhao
Binance CEO Changpeng Zhao has addressed the recent regulatory issues facing the exchange, comparing the growth in cryptocurrency to the early growth in popularity of the motor car. Binance has been targeted by several countries in recent weeks from the UK to Thailand, and the cryptocurrency world was awaiting Zhao’s response. In an open letter published today, CZ reminded readers of its guiding principles, attitude towards regulations, and how Binance plans to handle the regulatory issue going forward.
The World is Coming After Binance
Binance’s regulatory woes have been relentless in the past few weeks, with the UK’s Financial Conduct Authority, the Thailand Securities and Exchange Commission, and Japan’s Financial Services Agency all taking steps to prohibit their citizens’ use of the platform. In the open letter, published as a Binance blog, Zhao was circumspect about the attentions of the authorities, comparing the world of cryptocurrencies with the driving regulations that came about only after people started driving cars:
The 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.
This is a good analogy to use, although it underplays the borderless nature of cryptocurrencies; if people were able to drive cars all over the world then the analogy would be complete and would highlight the problems facing regulators.
Zhao: We’re Localizing Operations
Zhao also explained how user interest was always Binance’s priority, stating that the exchange had “added requirements for using our platform and set industry standards” in many areas. Zhao added that Binance has grown its compliance team by 500% in the last year, expanded its compliance partnerships (such as its implementation of CipherTrace Traveler), and is in the process of localizing its operations and businesses to “comply with local regulations”.
Whether this will be enough to satiate the regulators who are all of a sudden out for blood remains to be seen.