Decentralization is the core of cryptocurrencies, eliminating intermediaries and allowing users to manage their money. Since decentralization is the main goal of digital assets, it is not surprising that there does not seem to be room for regulation in this sector. Although this view is popular among users of cryptocurrency, history has shown that it is short-term.

Buying a less-explored asset class in the Wild West has little effect on investor confidence. As cryptocurrencies continued to rise in value, 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 credibility of an online exchange or the possibility of interest-bearing platforms going bankrupt. These concerns can be resolved through regulation, and even the most skeptical investors may want to step into cryptocurrencies.

Currently, industry leaders such as Binance, one of the world’s largest cryptocurrency exchanges, have set themselves the goal of meeting growing regulatory concerns. When we talk about the importance of regulation, Binance CEO, better known as CZ, encourages users to compare cryptocurrency regulation with car regulation.

he claims,

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

To understand the value of regulation, it is not surprising that Binance has made it a part of its commitment to keep users safe while navigating the crypto area. By practicing what they preach, the exchange remains in compliance with all regulatory requirements even before the regulators implement these actions.

Save money NArFU
One such initiative was Binance, one of the first crypto exchanges to establish a Safe Asset 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 security measure for all users of the platform.

More information about BINANCE here
Other notable measures include collaborating with several law enforcement agencies to identify perpetrators and hold them accountable for their actions. In terms of partnerships, Oslo Børs has looked to companies such as CipherTrance, a platform known for automating money laundering (AML) compliance via APIs, as part of its growing efforts. The team also conducts anti-money laundering audits, where the number has already been determined.

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

Where compliance pays off
The personal example proved to be useful for 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) to determine the establishment of an industrial hub for global virtual assets. By signing this Memorandum of Understanding, 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 shared further news of receiving initial approval from the Central Bank of Bahrain (CBB), which actually made the Binance Exchange the first regulator in the MENA region.

Together, these announcements represent an overarching mission to increase the use of cryptocurrencies in general. While analysts believe that the world is still in the early stages of adoption, with the remaining 95% looking for a regulated and licensed exchange with a local presence, Binance’s efforts seem like a clear step in the right direction.

Source: CoinTelegraph