Binance is facing many regulatory issues all over the world. The largest cryptocurrency exchange by trading volume has come under intense scrutiny by central banks and regulatory authorities in various countries.
Especially the UK’s pressure on Binance drew attention
Recently, the UK Financial Conduct Authority (FCA) stated that it has banned the cryptocurrency exchange from operating in the country and that the exchange is not approved under the FCA’s cryptocurrency registration regime, which provides digital asset services.
Recently, headlines were made when an investor filed a class action lawsuit against the platform’s futures, claiming they lost “tens of millions” of dollars because they were unable to manage their positions and view their balance during peak trading hours. This case came from a group of Italian and international investors.
As a result of the concerns of platform users and the exchange’s stakeholders regarding Binance’s global regulatory issues, Changpeng Zhao, the company’s CEO and founder, underlined the exchange’s commitment to cooperate with regulators.
In an open letter yesterday, Zhao highlighted that the cryptocurrency industry has evolved drastically in the past four years since the launch of Binance, and there is still a lot of regulatory uncertainty regarding cryptocurrencies.
“Growth comes with confusion”
He also noted that the cryptocurrency industry lacks clear regulatory frameworks in many countries, adding:
“Adaptation is a journey, especially in new industries like crypto. There is still a lot of uncertainty in the industry. We also recognize that growth comes with more complexity and more responsibility. We are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries.”
Zhao noted that Binance has grown its international compliance team and advisory board by 500% since 2020, including appointments from major global regulators such as the Financial Action Task Force. He also noted that Binance is actively implementing Anti-Money Laundering policies on its platform and is collaborating with crypto intelligence firm CipherTrace to provide further protection. Regarding this, “We are learning and improving every day. We firmly believe that our industry will benefit society by creating inclusive financial opportunities.” said.