After several panics, Binance’s offensive began. Regulators around the world revolve around cryptocurrency exchanges with the largest market capitalization. Their lawyers are working overtime. There are traps everywhere. A few months later, Binance was the one who made the rules. They are the ones who invite the supervisor to the castle. They try to set the tone and define what is a fully compliant cryptocurrency exchange.
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The campaign started with the first advertisement in Binance’s history.Full page of the Financial Times and A website to supplement it“Encryption belongs to all of us. However, if we want this breakthrough innovation to become a part of our daily lives, there is still a lot of work to be done. Just like the seat belts in cars, a more regulated cryptocurrency market is for everyday users. Provides greater protection,” the copy said. This is exactly what regulators want to hear.
-CZ 🔶Binance (@cz_binance) November 16, 2021
What did Binance say to the media?
The company’s CEO Changpeng Zhao (AKA CZ) was interviewed Bloomberg Spread the news. Regarding the purpose of their campaign, he told them:
“We have been communicating with many regulatory agencies around the world. As an emerging industry, we like to share what we think is important to users.
We want to put it there so that everyone understands what is important from our standpoint. We have shared this with different regulators-not in this form-and we also want users to know. We have a more detailed framework that can be shared directly with regulators. “
He also told them that the regulator was skeptical of Binance at first, but the face-to-face meeting helped them win their support. “When people see me with their own eyes, they will say,’Look, CZ is reasonable, calm, and not a lunatic.” On a related topic, when they asked him if users were leaving because of their enhanced compliance , CZ replied, “There is a small group of people who don’t like to understand your customer’s rules, get verification, etc. This is a free market. They can also use other platforms.” Then it claimed, “We only lost 3% of our users.”
BNB price chart on FTX | Source: BNB/USD on TradingView.com
Highlights of “10 Fundamental Rights of Encrypted Users”
Since the focus of this article is on regulation and compliance, let us focus on the three rights that touch on this topic.For those interested in the rest of the text, here is website. Binance basically promises to provide financial services, security and privacy for everyone.
“Two. Industry participants have a responsibility to work with regulators and policymakers to develop new standards for encrypted assets. Smart supervision encourages innovation and helps ensure user safety.”
Binance promised to cooperate with regulators and invite them to join the castle. Does the “smart supervision” section contain minor threats? If so, it will leave room for reasonable denial.
“Three. Responsible encryption platforms have an obligation to protect users from bad actors and implement Know Your Customer (KYC) processes to prevent financial crimes.”
Binance once again promised to implement KYC to all users. The platform once allowed unverified accounts to conduct small transactions. Once the regulator started knocking on the door, Binance announced KYC for everyone.
“Seven. Regulation and innovation are not mutually exclusive. Crypto users should safely use emerging technologies and practices, including NFTs, stablecoins, mortgages, income agriculture, etc.”
Binance is willing to work with regulators, but they must also play and make them work. So far, the company’s strategy has been to actively pursue every innovation in the cryptocurrency ecosystem. They want to continue to do so. otherwise.
The last two “fundamental rights” also involve regulations, but they are not so straightforward. They are also obvious. Article 9 says that “the market that provides derivatives should be properly regulated.” Tenth, “encryption regulation is inevitable.” Users have the right to express their concerns.
All in all, this is a very empty text and doesn’t say much. Very suitable for regulatory agencies. CZ is a genius, and Binance’s future looks bright.
Featured Image: Binance's first ever ad from this tweet | Charts by TradingView