- The world's largest cryptocurrency exchange has faced criticism and gotten pulled into legal battles with regulators worldwide.
- Binance's crypto constitution pushes for smart regulation, personal data privacy, reliable security and rules around derivatives products.
- The exchange argues that crypto regulation is arriving soon, and every human being should have access to financial tools.
Binance has been subjected to regulatory scrutiny by financial watchdogs worldwide. The exchange no longer has a headquarters and has pulled derivatives products from several countries, who were pushing for crypto regulation.
Crypto regulation is imminent, Binance welcomes it with a doctrine
Binance recently published a list of "fundamental rights" under increasing regulatory pressure and scrutiny by regulators and watchdog groups. The exchange argues that every human being should have access to crypto.
Changpeng Zhao (CZ), CEO of Binance, told Bloomberg that the list of fundamental rights reflects what Binance considers the most important factors in crypto regulation.
Zhao said,
We want to put this out there, so everybody understands from our position what's important. We already shared this — not in this format — with different regulators, and we want the users to know as well.
Binance has acknowledged that cryptocurrency platforms are obligated to protect users from financial crimes. Therefore, the exchange is keen on working with regulators to set standards and develop a framework that keeps users and their funds safe.
CZ argues that
This year, most of the regulators around the world are looking at crypto intently, and many of them are communicating with us. So we feel this is the right time.
The exchange's crypto doctrine is a call for global crypto regulation.
Earlier this year, Gary Gensler, SEC Chairman, referred to cryptocurrencies as the "wild west." CZ aims to regulate the industry so prominent players remain and small, unregulated firms are cut out of the ecosystem.
Binance published an advertisement in the Financial Times with the headline "Crypto is Evil." The ad asks users not to let headlines fool them when it comes to crypto and shares the ten fundamental rights for crypto users.
Our first ad ever, on Financial Times. pic.twitter.com/gnwNms6psq
— CZ Binance (@cz_binance) November 16, 2021
