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The largest cryptocurrency exchange by volume of transactions has been under intense scrutiny from central banks and regulatory authorities in several countries. Binance has been facing a lot of regulatory issues all over the world.
United Kingdom’s Financial Conduct Authority (FCA) banned the cryptocurrency exchange from operating in the country, stating that the exchange was not approved under the FCA’s cryptocurrency registration regime which is required for UK groups offering digital asset services.
As a result of concerns from the users of the platform and the exchange’s stakeholders over Binance’s global regulatory issues, the company’s CEO and founder, Changpeng Zhao, popularly known as “CZ” has underscored the exchange’s commitment to cooperate with regulators.
Truth be told, Zhao emphasized that the cryptocurrency industry has massively evolved over the past four years since Binance’s launch and there is still a lot of regulatory uncertainty around cryptocurrencies.
Recently , news of a class-action lawsuit against the platform’s futures trading by investors who claim they lost “tens of millions” of dollars due to not being able to manage their positions and view their balances during peak trading hours, has taken headlines. This lawsuit comes from a group of Italian and international investors.
Moreover, the founder said : cryptocurrency industry lacks clear regulatory frameworks in several countries. Compliance is a journey, especially in new sectors like crypto. The industry still has a lot of uncertainty. We also recognize that with growth comes more complexity and more responsibility.
However, We are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries.
Zhao mentioned that Binance has grown its international compliance team and advisory board by 500% since 2020, including appointments from major global regulators like the Financial Action Task Force. He also noted that Binance has been actively implementing Anti-Money Laundering policies on its platform, cooperating with crypto intelligence firm CipherTrace to ensure further protection.
Lastly, he stated : We are learning and improving every day. We firmly believe that our industry will benefit society through the creation of inclusive financial opportunities.
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