The global cryptocurrency exchange Binance has made regulatory compliance its top priority. The exchange is in the hiring frenzy to “significantly” expand its compliance and legal teams. “We are going through a transition from technology innovator to financial services company, so we need to be fully compliant,” said Binance CEO.
Binance’s regulatory compliance plans
Binance is focused on regulatory compliance as the exchange evolves from a technology startup to a financial services company, CEO Changpeng Zhao (CZ) explained in an interview with Bloomberg TV on Tuesday.
Commenting on the US crypto regulation efforts, he said, “The US is very mature in the field of crypto regulation. You are leading now. They have a cryptocurrency exchange that is listed on the Nasdaq, which is very positive. ”The executive continued:
When the new crypto regulations go into effect, many of them will be a bit restrictive. Somehow that is to be expected. However, we believe that over time, the regulations will adjust to market demand and hopefully get better.
“I believe right now all regulators around the world view crypto as a financial instrument in one way or another,” he continued.
The CEO said he spends almost all of his time, which is “likely 80% or more,” in compliance, noting that he is “not really involved in the day-to-day running of the exchange”.
We’re going through a transition from technology innovator to financial services company, so we need to be fully compliant.
He outlined a few priorities that Binance is focusing on in order to become compliant. “We have to hire a lot more people,” he began. “We need to hire people with regulatory compliance experience and very experienced people who can bring in teams. We need to significantly increase the size of our compliance and legal teams. “
Binance announced on Wednesday that it has hired Greg Monahan, a former U.S. finance detective, who will join the organization as the Global Money Laundering Reporting Officer (GMLRO).
Earlier this month, Brian Brooks, the currency’s former acting auditor, resigned as CEO of Binance US due to “differences over strategic direction.”
Zhao also stated that Binance will have to give up its decentralized vision. “We were looking for the decentralized organizational structure that does not work with regulators … Now we are setting up the headquarters, the right structures, the proper governance, the proper audits, etc.”
Additionally, the CEO said, “We need to make sure that all of our products are fully compliant … This is why we have restricted our futures and derivatives products in most of Europe and also in some parts of Asia.”
Next, he said Binance had to “apply for licenses” and stressed that it was “very important” for the company to “communicate with regulators” and “request regular meetings where we proactively inform them of our activities”.
A number of regulators around the world recently issued warnings about Binance. These include regulators in the UK, Japan, Malaysia, Thailand, Germany, the Cayman Islands, Lithuania and Hong Kong.
What do you think of Binance’s compliance plans? Let us know in the comment section below.
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