Cryptocurrencies are based on decentralization, eliminating intermediaries and giving users the ability to manage their money. Since decentralization is the primary goal of digital assets, it is not surprising that regulation does not have a place in this sector. Although this opinion is popular among cryptocurrency users, history has shown that this opinion is short-lived.

Buying a lesser-known asset class in the “Wild West” does little to boost investor confidence. Later, as the value of crypto assets continued to rise, the media was quick to point out the amount of fraud, insider trading and market manipulation, including but not limited to pumping and dumping schemes.

These risks are added to the less obvious ones, including the reliability of an online exchange or the potential for interest-bearing platforms to go bankrupt. These concerns can be addressed through regulation, and even the most skeptical of investors may want to switch to cryptocurrency.

Currently, industry leaders such as Binance, one of the largest cryptocurrency exchanges in the world, have set a goal to address the growing regulatory challenges. When we talk about the importance of regulation, the CEO of Binance, better known as CZ, encourages users to compare the slate of cryptocurrencies to cars.

he claims

“When the automobile was first invented, there were no rules on the road, no traffic lights, not even seat belts. Laws and guidelines were developed while cars were on the road.”

While recognizing the value of regulation, it comes as no surprise that Binance has made it part of their commitment to keeping users safe while navigating the crypto world. By practicing what they preach, the exchange remains in compliance with all regulatory requirements even before these actions are taken by regulators.

NARFU Holdings Funds
One such initiative was that Binance became one of the first crypto exchanges to maintain an active Safe Emergency Fund (SAFU). The fund, valued at $1 billion at the end of January 2022, consists of a percentage of all trading fees incurred on the platform and provides a measure of safety for all users of the platform.

More information about BINANCE here
Other notable efforts include partnering with several law enforcement agencies to identify perpetrators and hold them accountable for their actions. In terms of partnerships, the exchange has reached out to companies like CipherTrance, a platform known for automating anti-money laundering (AML) compliance for cryptocurrency via APIs, as part of its increased efforts. The team also conducts anti-money laundering audits, a number of which have already been approved.

Their compliance is not limited to these regulations as Binance recently expanded its compliance team. With a 500 percent increase from the previous year, several former FATF leaders have joined the ranks to ensure the team complies with all local regulations that apply in their workplace.

Where compliance pays off
The personal example proved useful to Binance, who have since shared some promising updates with their community in response to their efforts. On December 21, 2021, the Binance team announced the signing of a Memorandum of Understanding, or Memorandum of Understanding, with the Dubai World Trade Center Authority (DWTCA), which outlines the creation of an industrial hub for global virtual assets. By signing this MoU, Dubai, with the help of Binance, is demonstrating its commitment to long-term economic growth driven by digital innovation.

On December 27, 2021, the Binance team published new news that it had received initial approval from the Central Bank of Bahrain (CBB), making the Binance exchange the first regulator in the Middle East and North Africa region.

Together, these announcements point to a much larger challenge to the increased use of cryptocurrencies in general. While analysts believe the world is still in its early stages of use, with the remaining 95% of people looking for a regulated and licensed exchange with a local presence, Binance’s efforts seem to be a clear step in the right direction.

Source: CoinTelegraph