Embattled Binance sends out bill of ‘10 Fundamental Rights’
Binance, the world’s largest cryptocurrency exchange by trade volume, has proposed ‘10 Fundamental Rights for Crypto Users’, with provisions that focus on privacy and how cryptocurrency exchanges should serve their customers.
The proposals aim to simplify access to crypto technologies that protect users without restraining growth and innovation.
Binance Rights aim to help exchanges protect their customers
Binance’s 10-point carefully worded ‘crypto constitution’ strikes a delicate balance ahead of the anticipated regulation of the crypto industry by governments.
The document further appeals for the strict protection of personal data and easy universal access to financial tools like cryptocurrencies.
According to a press release sent out yesterday, the provisions of the proposed ‘bill of rights’ are directed at cryptocurrency exchanges and will form a regulatory framework for the global cryptocurrency market.
The proposals encourage cryptocurrency exchanges to protect their customers from hackers and other bad actors while guaranteeing enough ‘liquidity to ensure a stable and frictionless trading environment.’ Commenting, Binance founder and CEO Changpeng Zhao “CZ” explained in a statement:
“We want to do everything possible as an industry to work with regulators and world leaders to identify what is going to be the effective regulatory policy that, most importantly, protects users and spurs innovation. At Binance, we look forward to working closely with regulators to help increase their knowledge on the industry and its possibilities.”
The suggestions by Binance come at a time when the giant exchange is working hard to reinvent its corporate image, which has been battered in a joint effort from regulators in the U.K, U.S.A and other nations.
Binance 10 Fundamental Rights: A self-rehabilitation plan?
Last June, the U.K.’s Financial Conduct Authority (FCA) ruled the company couldn’t conduct regulated activities in the country and warned its residents to be wary of the company’s adverts promising high returns on cryptocurrency investments. Bloomberg reported in September that U.S’s Commodity Futures Trading Commission (CFTC) was probing the exchange over alleged market manipulation and insider trading.
According to CFTC, Binance and / or its employees benefited by manipulating customer orders from the millions of crypto transactions they could access from people trading digital assets on their platform. Data from Statista shows the firm traded volumes worth at least $26.3 billion on November 8, 2021, proving it is still the world’s leading cryptocurrency exchange.
Regulatory authorities in Germany, Hong Kong, Italy, Japan, Lithuania, and Thailand, have raised red flags on the modus operandi of Binance and other exchanges that have thrived in an unregulated environment. As a result, the besieged exchange has been on a hiring spree targeting former law enforcers, prominent IRS agents, and former Europol investigators in its rehabilitation plan.
The centralized exchange also recently hired former U.S. Treasury criminal investigator Greg Mohanan to supervise its anti-money laundering efforts. Mohanan stated:
“My efforts will be focused on expanding Binance’s international anti-money laundering (AML) and investigation programs, as well as strengthening the organization’s relations with regulatory and law enforcement bodies worldwide.”
Monahan hoped that the proposed ‘fundamental rights’ would send a signal to regulators that players in the crypto industry were taking the law and customers’ rights seriously. While Binance is hoping governmental authorities will take their initiative seriously, only time will tell whether the ‘bill of rights will appease the regulators or create a positive impact on the rising cryptocurrency industry.
Here is the bill in full:
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