Binance CEO Unveils New Approach to Compliance Amid Regulatory Setbacks
Binance CEO Changpeng Zhao says the cryptocurrency exchange is taking a proactive approach towards regulatory compliance.
Zhao states in a tweet that Binance is ‘pivoting’ after weeks of facing multiple regulatory setbacks across the globe.
“Binance pivoting from reactive compliance to proactive compliance. Stay tuned.”
The Binance CEO further says that ‘one of many’ steps the cryptocurrency exchange will adopt as it embraces ‘proactive compliance’ is banning Hong Kong users from opening new derivatives products accounts.
“New Binance users from Hong Kong can no longer open futures accounts and we will wind-down access for existing users. This is one of many proactive measures Binance is taking to help establish crypto compliance best practices worldwide.”
Hong Kong users will have a grace period of 90 days within which to exit existing futures positions. Binance will not permit new positions to be opened during the grace period.
Over the past couple of weeks, the cryptocurrency exchange has withdrawn various products and changed operating practices that could attract the ire of regulators.
For instance, Binance lowered the maximum amount of Bitcoin that users who have only undergone a basic know-your-customer verification procedure can withdraw. The cryptocurrency exchange also limited the amount of leverage offered to a maximum of 20x while stopping the use of select fiat currency pairs in margin trading.
Zhao’s announcement follows a string of regulations-related setbacks, including losing payment services provided by traditional financial institutions. Early last month, amid the regulatory pressures, Binance announced it would be expanding its compliance team.
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Article reposted on Markethive by Jeffrey Sloe
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