Binance, the leading cryptocurrency exchange, has announced it is preparing changes to be able to work with regulators more closely. Changpeng Zhao, the CEO of Binance, said that the company is prepared to make the necessary changes to transform the exchange into an regulated financial institution. Binance has found a solution to several regulatory issues that it has faced with regulators around the globe.
Bitcoin news Binance Prepares Regulator-Friendly Modifications
Binance, the largest cryptocurrency exchange in terms of trade volume, announced that it is working to make changes to better meet the needs of regulators. The statements were made by Binance’s CEO, Changpeng Zhao, in an interview with the South China Morning Post published on September 16, where he hinted at a change in how the institution will treat regulatory matters. He stated:
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 departure from the previous policy that Binance applied, which stated it was not headquartered anywhere in the globe because Bitcoin was. This policy was the source of problems for Binance when it came to regulators complaining about its inability to register for operations in many countries.
Bitcoin news Undoing the Damage
From the interview, it’s clear the recent regulatory problems the exchange has been facing have completely changed Zhao’s vision about how things must be done for compliance purposes. He appeared to abandon his old beliefs and stated:
We need clear records to show who owns what, how transparent we are, and what risk controls we have. We need to be prepared for the shift as the largest industry player. We are making adjustments to make it easier for regulators to work with us.
This pivot to compliance is more than just talk. Binance has been actively recruiting human resources to improve its compliance and tighten its control over funds traded on its platform. Binance just announced that Nils Andersen Roed, an ex-Europol Dark Web specialist, was being hired to strengthen their audits and investigations team.
Last month Greg Monahan (a former U.S. Treasury criminal investigator) was appointed Binance’s Global Money Laundering reporting officer to help improve AML policies within the exchange.
What do you think about Binance changing to work more closely with regulators worldwide? Let us know your thoughts in the comments below.
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