The global cryptocurrency exchange Binance has made regulatory compliance its top priority. The exchange is on a hiring wave to add “significantly” to its compliance and legal teams. “We are moving from a technology innovator to a financial services company, so we need to be fully compliant,” Binance CEO said.
Binance Regulatory Compliance Plans
Binance is focusing on regulatory compliance as the exchange moves from a tech startup to a financial services company, CEO Changpeng Zhao (CZ) explained in an interview with Bloomberg TV on Tuesday.
Commenting on the crypto regulatory efforts in the United States, he said, “The United States is very mature when it comes to the crypto regulatory part. They are leading now. They have a cryptocurrency exchange listed on the Nasdaq which is very positive. The executive continued:
When the new crypto regulations take effect, many of them will be somewhat restrictive. It’s a bit expected. But over time, we believe the regulations will adapt to market demand and hopefully improve.
“I think right now all regulators around the world view crypto as a financial instrument in one way or another,” he added.
The CEO said he devotes almost all of his time, which is “probably 80% or more”, to compliance, noting that he is “not really involved in the day-to-day operations of the exchange.”
We are in the process of moving from a technology innovator to a financial services company, so we need to be fully compliant.
He named some priorities that Binance is focusing on to become compliant. “We need to hire a lot more people,” he began. “We need to hire people with regulatory compliance experience and very experienced people who can recruit teams. We need to significantly… increase the size of our legal and compliance teams. “
Binance announced Wednesday that it has hired Greg Monahan, a former U.S. Treasury criminal investigator, who is joining the organization as Global Money Laundering Reporting Officer (GMLRO).
Earlier this month, former acting currency controller Brian Brooks resigned as CEO of Binance US over “differences in strategic direction.”
Zhao also explained that Binance must abandon its decentralized view. “We were aiming for the decentralized organizational structure that does not work with the regulators… Now we are establishing a headquarters, appropriate structures, good governance, appropriate audits, etc. “
In addition, the CEO said: “We need to make sure that all of our products are fully compliant… This is why we have also limited our futures contracts, our derivatives in most countries in Europe and some regions of Europe. ‘Asia.
Next, he said Binance should “apply for licenses,” stressing that it was “very important” for the company to “communicate with regulators” and “request regular meetings where we proactively inform them of what we do “.
A number of regulators around the world have recently issued warnings regarding Binance. They include regulators in the UK, Japan, Malaysia, Thailand, Germany, Cayman Islands, Lithuania and Hong Kong.
What do you think of Binance’s compliance plans? Let us know in the comments section below.
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