Binance and its workings came under massive scrutiny recently as financial regulators took it upon themselves to impose sanctions. To ensure its users of the safety of their holdings, Binance CEO Changpeng Zhao released a blog detailing current and future plans.
In the blog, CZ stated that the drastic adoption jump could be owed to the market realizing the potential of digital assets. Binance has added requirements for using the platform such as stricter insider trading policies, a Secured Asset Emergency Fund, and a firewall to separate out the listing team. Apart from this, Binance has invested in edtech resources such as Binance Academy.
The Binance blog added:
“We also protect our users through our work with law enforcement agencies such as the U.S. Internal Revenue Service (IRS), the UK South East Regional Organized Crime Unit, and many more to crack down on cybercrimes such as money laundering, terrorist financing and scams. In 2021, we have completed assisting 5,600 investigation requests already,100% more than 2020.”
Binance further boosted its international compliance team by a whopping 500 percent since 2020. This comes at a time when local governments were opposing Binance’s entry into foreign shores. CZ reiterated that the company would do everything in its power to comply with government mandates that allow smooth functioning.
Technology partnerships were a big arena for Binance with tie-ups including members such as CipherTrace. Binance also cleared multiple AML audits to further strengthen fund security. CZ’s letter was the first step in acknowledging the need for more transparent communication between crypto honchos and regulators. In Zhao’s words:
“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.”