Leading cryptocurrency exchange, Binance is finally considering abandoning the idea of running “decentralized headquarters” as part of the effort to collaborate with regulators, according to the CEO, Changpeng Zhao. Although the exchange is centralized, it has since claimed that it doesn’t have any physical headquarters. This narrative isn’t going well with regulators.
The exchange has been under regulatory turbulence for quite some months, and regulators find its operation to be “dodgy,” based on the claims that Binance doesn’t have centralized entities anywhere around the world.
While speaking with the South China Morning Post on Thursday, CZ emphasized why a centralized entity would be necessary at this point, as the exchange seeks to comply with regulators.
“There are very simple questions regulators usually ask us, which our response is kinda funny. The regulators ask us where’s your headquarters, and our responses is, well, we don’t have headquarters. That doesn’t go well with regulators. They don’t know how to work with us. Sometimes they even think we are dodgy obviously,” Zhao said.
As a centralized exchange, Binance needs to establish a centralized entity while also maintaining clear records of stakeholders’ ownership, risk controls, and transparency for them to work well with regulators.
Over the past few months, Binance faced regulatory headwinds from countries in the European Union, including the United Kingdom. Recently, the Monetary Authority of Singapore (MAS) added the exchange to its Investor Alert List, which comprises unregulated entities that may have been wrongly perceived as being licensed or regulated.
Early this month, the South African authorities had warned citizens against using or accessing Binance services, given they are not regulated in the country.
This post was last modified on September 16, 2021 12:21 pm
TL;DR Breakdown Dogecoin price analysis is bullish today.DOGE/USD set higher low at $0.26.Dogecoin to move… Read More
TL;DR Breakdown Ethereum price analysis is bullish today.ETH/USD set higher local high. Next target at $4,400… Read More
TL;DR Breakdown The Litecoin price analysis shows mixed market sentiment.Strong support is found at $190.The… Read More
TL;DR Breakdown NFTs have now diversified away from the art and production environment to various… Read More
TL;DR Breakdown Filecoin price analysis is mildly bullish today.Strong support is found at $60.Resistance is… Read More
TL;DR Breakdown Non-fungible tokens (NFTs) have caused so much buzz in both blockchain and Decentralized… Read More