Binance has been operating as the world’s largest crypto exchange for years, and by now, it has spread its services to most parts of the world. However, recently, authorities of a number of countries raised concerns about the platform, including Japan, Germany, Thailand, and, as of late, the UK, as well.
As anyone who ever used the exchange likely knows, Binance offers a variety of products and services. Users can engage in spot trading, derivatives trading, and even buy tokenized stocks. The exchange also has its native launchpad for new projects which actually started the IEO token sale model back in January 2019, when it launched TRON’s BitTorrent Token (BTT/USD).
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Over the years, the company launched a number of subsidiary exchanges, seeking to establish a presence on every continent, and offer coins and tokens that are approved by the local regulators. However, the problem is that all of this happened in a span of only a few short years, as the exchange rushed to dominate the crypto market on a global scale.
This is an issue as, according to the words of its own CEO, Changpeng Zhao, “We haven’t always got everything exactly right.” Zhao said as much in a recent letter through which he addressed all the recent regulatory concerns.
Binance’s eagerness to grow backfires
From the regulators’ point of view, the crypto industry is still a major issue. Many are worried about criminals using them for money laundering, scams, terrorism financing, tax evasion, and similar illegal actions. The fact that investors are constantly falling victims to scams is also not helping its reputation.
On top of that, Britain and Japan have accused the exchange of offering regulated services illegally, without having the necessary licenses, while Germany’s regulators warned the exchange that it will be fined for offering tokens tied to stocks. While Zhao did not mention these particular accusations, he did point out that scrutiny is on the rise, which shows that the unregulated crypto industry is beginning to mature.
His response to the situation is that Binance will expand its international compliance team and advisory board. The team has already grown by 500% in the past year, as he claims, and the exchange plans to double it by the end of the year. Hopefully, the move will allow the platform to see what it is doing wrong and avoid further accusations and incidents in the future.
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