Binance CEO addresses regulatory troubles

Speaking at a virtual press conference Tuesday, Binance CEO Changpeng “CZ” Zhao said that the company is going to “pivot to be a fully regulated financial institution going forward.”

This will involve opening headquarters, and creating a structure regulators can easily recognize. 

Zhao also mentioned that he’s willing to step down from his role as the exchange progresses towards its goal of becoming a regulated financial institution.

“There is always a pool of candidates who could succeed me. We are looking for someone with a strong regulatory background to step in and be CEO,” Zhao said. However, there is no timeline for his succession, and he will not be stepping down right away.

Zhao also put up a series of tweets to update Binance users on the “active steps [we’re] its taking to build upon efforts to be more compliant with local regulations everywhere.”

First, Zhao said that Binance has “commenced processes for licenses and approvals where there is an existing legal framework for crypto exchanges.”

This includes on-going work across Asia-Pacific, EMEA and Latin America. Binance will also actively work with regulators as more crypto-specific frameworks are introduced.

Daily withdrawal limits will be adjusted from 2 BTC to 0.06 BTC (roughly ~$2,000 USD) for accounts who have only passed Basic account verification, as the exchange ramps up its KYC process.

Next, Binance Futures has been limiting new futures accounts opened within the past 30 days to 20x leverage from July 19. From 27 July, it will extend the limit to accounts opened within the past 60 days.

It has also launched a new tax reporting tool — an API which users can use to track crypto activities and connect to third party tax vendors to streamline reporting requirements.

Binance has been under regulatory scrutiny

Binance is the world’s largest digital currency exchange by trading volume. 

It has come under intense regulatory scrutiny lately as authorities around the world seek to clamp down on the fast-growing crypto industry.

At the start of July, Britain’s financial watchdog has barred major cryptocurrency exchange Binance from carrying out regulated activities.

Japan’s regulator said Binance was operating in the country illegally, while Germany’s watchdog said in April it risked being fined for offering tokens connected to stocks.

Featured Image Credit: Binance

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