Binance has its eyes focussed on compliance with its latest addition to the Binance.us team, Manny Alvarez, a former regulator, in its effort to provide a secure platform for its users in the United States.
Primary Focus on Compliance
Binance.us has taken proactive steps to reassure its users that the crypto exchange platform provider is not skirting on compliance in the United States. The latest move comes amidst growing concerns about the issue, and the exchange is addressing it head-on. Binance.us has added to its payroll a former California regulator, Manny Alvarez, in its effort to tow the regulatory line.
Binance.us is a digital asset marketplace launched in September 2019, meant specifically for users from the United States. It is a separate entity incorporated to provide a digital asset marketplace suited for the local regulations. In an announcement on July 6th by Binance.us, the scope of Alvarez’s new role will involve overseeing major control functions, including risk, compliance, and legal matters.
Alvarez was a former commissioner with the California Department of Financial Protection and Innovation (DFPI). The former regulator was appointed as Binance.us’s new Chief Administrative Officer, a position meant to oversee regulatory and compliance matters for Binance.us. The appointment of Alvarez will bring the institutional knowledge to help Binance navigate the fickle regulations in the US.
Alvarez was previously rumored to be in contention for Binance’s top position in the Office of the Comptroller of Currency (OCC). The OCC position was previously held by Brian Brooks, who is now the Chief Executive Officer of Binance.us.
Recognizing Regulatory Needs
America is undeniably one of the significant markets for Binance, and the recent surge in adoption by those seeking exposure to digital assets sees Binance as their top choice. To ensure that a more jurisdiction-centric entity is tasked to undertake compliance, Binance.us was formed.
In March 2021, rumors started to surface that Binance has been allowing U.S. citizens to onboard its platform to trade in derivatives. In the United States, any platform that allows for such activity must first obtain the necessary licenses.
Binance draws a lot of attention as a leading crypto asset marketplace, especially when the crypto space is growing exponentially. It comes as no surprise that Binance will be under the regulators’ scrutiny. The responsible response is to accept that this space will be regulated like the existing equities market and ramp up compliance.
The appointment of a former regulator is among the various steps being taken by Binance to conform with authorities’ demands. On June 30, Binance announced that it will be adopting the CipherTrace Traveller to meet the global Financial Action Task Force’s (FATF) ‘travel rule’ requirement. On June 24, 2021, Binance was commended for assisting in a local law enforcement investigation in the UK.
Regulation as a Compulsory Component
There are a few ways to view regulations. The primary function is to prevent illicit activities that may affect the integrity of the market. A common narrative of a decentralized system is to oust government-imposed restrictions. But of late, we have seen how the marketplace can be manipulated by ‘bad actors’ for dubious activities. The recognition for regulation is slowly becoming an acceptable norm for the market participants.
In the words of Brian Brooks, the Chief Executive Officer of Binance.us: “Compliance is the key to creating trust with both our customers and our regulators.”
To instill confidence in its users, Binance must take proactive steps to meet regulatory demands. Binance has its policies focused on compliance by putting people with regulatory experience in positions where constructive engagement can occur. The regulated space is a top-down directive and involves feedback by industry players and constant engagements to find the best solution in a new industry. The relationship has to remain cordial among all the stakeholders for the space to flourish.
Source : bsc.news
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