‘Compliance is a journey,’ says Binance CEO amid regulatory scrutiny

Published at: July 7, 2021

Amid intensifying concerns over Binance’s global regulatory issues, the company’s CEO and founder, Changpeng Zhao, has underscored the exchange’s commitment to cooperating with regulators.

In an open letter on Tuesday, Zhao emphasized that the cryptocurrency industry has massively evolved over the past four years since Binance’s launch, while there is still a lot of regulatory uncertainty around crypto.

In response to the growing regulatory “hyper-focus,” the CEO shared Binance’s key principles, including its willingness to work with financial authorities in order to be a “positive contributor.”

Zhao said that the crypto industry still lacks clear regulatory frameworks in several countries, noting that “more regulations are, in fact, positive signs that an industry is maturing.” The executive elaborated that clear regulations provide a foundation for adoption as more people feel safe to participate in crypto, adding:

“Compliance is a journey — especially in new sectors like crypto. The industry still has a lot of uncertainty. We also recognize that with the growth comes more complexity and more responsibility.”

Zhao reiterated Binance’s commitment to partnering with regulators and the company’s approach to handling the growing popularity of its platform, including active hiring and placing more systems and processes to protect their users.

The CEO mentioned 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. Zhao noted that Binance has been actively implementing Anti-Money Laundering policies on its platform, cooperating with crypto intelligence firm CipherTrace to ensure further protection.

“We are learning and improving every day,” Zhao wrote, outlining Binance’s ultimate goal as increasing freedom and inclusion for a “better human society.” “We firmly believe that our industry will benefit society through the creation of inclusive financial opportunities,” the CEO concluded. Zhao said that the company welcomes “more constructive guidance” to help the exchange grow better.

The news comes as Binance faces major scrutiny from regulators around the world, including authorities in the United Kingdom, Japan, Canada, the United States, Thailand and the Cayman Islands. Growing concerns over Binance’s regulatory status have already triggered some consequences for users, including an upcoming suspension of bank transfers to the platform and banks such as Barclays stopping payments to Binance.