As per opinion of the CEO of FX hedge fund – Three Arrows Capital, Su Zhu, Binance is the largest and trusted crypto exchange in the global market. Binance cryptocurrency is the most preferred digital asset among the investors.
Binance Light Regulations
To prevent the occurrence of fraudulent activities in the cryptocurrency market, various lawmakers have placed down strict rules and regulations to protect the privacy of each crypto transactions accordingly.
Binance major aim is to encourage deal in between cryptocurrency to another cryptocurrency. In Uganda, strict regulations have been laid down in fiat to crypto exchanges, and they may get support from the Singapore authorities and local financial bodies to conduct operations in Singapore.
Binance has been categorized under light regulated exchange when compared to the US exchange policy structures. However, the same case doesn’t prevail in places like Uganda and Singapore. In markets such as US, South Korea, and Japan these are operated under strict standards as a fiat to crypto exchanges as these countries abide by strict laws and regulations and hence to operate in such markets, they need to follow the guidelines issued by such countries.
Even though the company is benefitting due to the existence of friendly regulation in the local cryptocurrency market, the situation is different in other countries. To get listed and operated every cryptocurrency need to follow the appropriate guidelines.
From the starting point, Binance was vigilant with respect to the transaction security and investor protection. Such a motive has helped them to be protected from the hacker’s attack that leads to the money laundering issues and affects the smooth functioning of the system. Such effective and efficient exchange policy has maintained a good record of the cryptocurrency and hence been able to gain the trust from potential investors and leaders.
Changpeng Zhao, the CEO of Binance, is popularly known to provide a timely update. He is proactive in speaking out every change and gives out a timely announcement with respect to the exchange changes. Unlike other companies, Binance is quite active while sending updates for every change that occurs in the exchange department thereby ensuring that every investor fund is safe and secured.
Binance came into existence with a motive to track every wallet and the transactions associated with it that helps to identify fraudulent and criminal activities. Further, Binance has also entered into a joint venture to encounter such problems effectively.
Wei Zhou, the CFO at Binance, quoted in the month of October that:” By working with Chainalysis, we can continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally while adhering to regulatory mandates in the countries we serve. ”
Is there need of strict regulations in the crypto exchange?
In such a vulnerable market, a strict policy helps an investor to keep their transactions safe and secure from any illegal activities. Further, every piece of information is very much effective in this field and hence Know your customer (KYC) guidelines need to be followed appropriately.