Binance, the world’s largest crypto exchange by trade volume, has published a list of “fundamental crypto rights” as it faces increased regulatory pressure.
Binance’s chief executive Changpeng Zhao, who goes by the name ‘CZ’, is signalling his support for greater crypto regulation with the publication of a list of guidelines which he hopes will underpin a global regulatory framework. While the crypto industry has hitherto thrived in a lax regulatory environment – often dubbed a “wild west” – the need for clarity and security is becoming ever more clear as investors pour into the space, CZ said.
“This year, most of the regulators around the world are looking at crypto intently, and many of them are communicating with us,” Zhao said.
“So we feel this is the right time” to issue a call for a global framework.
“We feel that it is important for industry players to have a seat at the table. And we also feel that some regulations, if they’re made in a vacuum, may not have practical considerations in how they are applied, and they don’t get applied very well.”
Regulatory scrutiny has increased this year while crypto’s market value has skyrocketed, topping $3tn last week as Bitcoin and Ethereum touched new all time highs. Last month, the UK’s central bank issued a stark warning that the crypto market has become too large for authorities to ignore.
The Bank of England’s deputy governor for financial stability, Jon Cunliffe, warned that urgent regulation was needed and said a massive crypto market crash could disrupt the global economy.
Binance has faced intense scrutiny from regulators worldwide. In June the UK’s FCA issued a warning about Binance on its website causing major banks to stop British customers from using the exchange. In the months since, the embattled exchange has pivoted from a reactive to a proactive stance on regulation.