{"id":6585,"date":"2021-12-10T15:12:14","date_gmt":"2021-12-10T15:12:14","guid":{"rendered":"https:\/\/www.sygna.io\/?p=6585"},"modified":"2021-12-10T15:23:50","modified_gmt":"2021-12-10T15:23:50","slug":"binance-demands-global-regulatory-framework-with-10-fundamental-rights-for-crypto-users","status":"publish","type":"post","link":"https:\/\/www.sygna.io\/jp\/blog\/binance-demands-global-regulatory-framework-with-10-fundamental-rights-for-crypto-users\/","title":{"rendered":"Binance Demands Global Regulatory Framework With 10 Fundamental Rights For Crypto Users"},"content":{"rendered":"\n

Introduction<\/h2>\n\n\n\n
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On Nov. 16, Binance, the world\u2019s largest digital asset exchange by volume and a recent lightning rod for regulatory scrutiny, released a list of 10 principles it said it hopes can guide lawmakers and regulators as they seek to impose more rules and frameworks on cryptocurrency markets worldwide.<\/p>\n\n\n\n

The company\u2019s 10 Fundamental Rights for Crypto Users<\/a> are meant to guarantee customers access to the new technologies via safe platforms, while they simultaneously seek to safeguard the open and innovative nature of the industry, according to the press release<\/a>.<\/p>\n\n\n\n

The company says regulation is inevitable and even beneficial if approached with care, comparing the issue to requiring seat belts in cars.<\/p>\n\n\n\n

\u201cAt Binance, our priority has always been the everyday user, from their security to their experience as part of a greater community,\u201d says Binance founder Changpeng Zhao.<\/p>\n\n\n\n

Binance\u2019s call comes at a time when massive crypto exchanges have come under increased scrutiny from governments around the world. In the last year, the SEC served Coinbase a Wells Notice<\/a> over its Lend program, while BitMEXwas forced to pay $100m<\/a> in a settlement to the CTFC for anti-money laundering (AML) violations.<\/p>\n\n\n\n

Rival exchange FTX released its own recommended guidelines<\/a> for regulators in early December, with CEO Sam Bankman-Fried testifying on December 8th in front of the House Committee on Financial Services along with the CEOs of other exchanges.<\/p>\n\n\n\n

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Size does not confer legitimacy: Binance seeks safe harbor<\/h2>\n\n\n\n
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Binance\u2019s country of residence has always been disputed, with the exchange obfuscating is domicile occasionally on purpose. Founded in 2017 by Chinese-Canadian Zhao, commonly referred to as CZ, Binance had originally been headquartered in China, though it moved to Japan that same year amid a crypto crackdown by the Chinese Communist Party. Between 2018 and 2019, the company expanded its operations to Malta, Jersey, and Bermuda.\u00a0 By March 2021, Zhao still maintained that his exchange had no physical headquarters. <\/a><\/p>\n\n\n\n

\u00a0However, last year turned out to be a tough year for Binance as it found itself getting increasingly isolated as jurisdictions distanced themselves from it.\u00a0<\/p>\n\n\n\n

Maltese regulators in 2020 said the company did not have the right to operate in the cryptocurrency sphere and that they were reassessing its activities. <\/p>\n\n\n\n

Previously banned in the U.S. before the opening of a separate FinCEN-registered exchange, <\/a>the company is currently under investigation by both the Department of Justice and the IRS. Last June, Japan issued its second warning that Binance was not registered to do business there, while the U.K. has also ordered the company to cease its activities in the country due to failures of AML-compliance. South Africa also issued a similar notice<\/a>. Additionally, the exchange faced a criminal complaint in Thailand last July for operating without a license.<\/p>\n\n\n\n

Meanwhile, in 2020, staff members from Forbes released documents indicating Zhao had designed his U.S. business model so as to deliberately mislead regulators about his operations in the country.<\/p>\n\n\n\n

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What principles are Binance proposing?<\/h2>\n\n\n\n
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The 10 rights suggested by Binance are a mix of rhetoric and specifics, with some dishing up boilerplate mission statements, such as the first: <\/p>\n\n\n\n

\u201cEvery human being should have access to financial tools, like crypto, that allow for greater economic independence,\u201d and the second: <\/p>\n\n\n\n

\u201cIndustry participants have a responsibility to work with regulators and policymakers to shape new standards for crypto assets.\u201d<\/p>\n\n\n\n

Nevertheless, specific though undetailed frameworks are laid out too, such as:<\/p>\n\n\n\n