On the 2022 compliance road, how many cards did Changpeng Zhao and Binance gain?

Less than a month after Terra, whose peak market value was as high as $40 billion, exploded, Three Arrows Capital (3AC), once regarded as the top VC in the encryption industry, also experienced a liquidity crisis, which directly or indirectly led to Businesses were hit hard.

The problem of 3AC is not only reflected in the loss of funds. Behind this crisis, we can see that there is no supervision of funds , 3AC can misappropriate client funds at will.

Regulation and innovation have never been opposites, and reasonable regulation is conducive to the healthy development of the industry. In September 2021, Coinbase tried to launch a C2C lending and wealth management service, but was opposed by the SEC, claiming that it would be sued if it launched the service. Today, it must be another mood to see many companies that are on the verge of insolvency because of 3AC’s loan services.

Of course, Coinbase has been built on supervision since its inception, and its reference value to the industry is limited. As one of the largest encrypted trading platforms in the world, Binance may be more worthy of reference.

Communication and cooperation, expanding licensed territory

Only In the first half of 2022, Binance It has successively obtained the fourth type of license in Bahrain, the fully regulated virtual asset (VA) trading platform license in Dubai, the cryptocurrency regulatory license in the first and second largest cities in the United Arab Emirates, and the approved registration licenses in France and Italy.

Currently, including Binance.US, Binance The brand is already licensed in the United States, France and Italy in the G7 countries. At the same time, Bahrain, Abu Dhabi and Dubai in the Middle East have also granted compliance licenses or permits respectively.

Different regions and countries have different attitudes and understanding of encrypted assets, so different strategies need to be adopted. Binance To be able to obtain many licenses and regulatory approvals within half a year, the same core lies in continuous communication and cooperation. Just like last month, Binance Founder and CEO Changpeng Zhao attended the Marketing Rock Star Festival (OMR) in Hamburg, Germany. Although he is still actively applying for a German license, he has already begun to recruit a large number of compliance personnel and carry out industrial ecological layout.

In addition to seeking a G7 license, Binance Recently, the pace of layout in Central Asia and Southeast Asia is also accelerating. On May 25, Changpeng Zhao and his entourage met with Kazakhstan President Kassym-Jomart Tokayev and other officials. Signed a Memorandum of Understanding with the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan. On June 8, Changpeng Zhao met with Philippine officials to seek licenses for virtual asset service providers (VASPs) and electronic money issuing institutions (EMIs).

Subsequently, Binance Partnering with MX Global, a local Malaysian trading platform, to help the adoption of digital assets in Malaysia. Next, Binance A formal strategic cooperation with the Vietnam Blockchain Association will help Vietnam conduct blockchain technology research, application exchanges and human resource training, and promote the development of blockchain technology in Vietnam.

Binance While attacking cities and territories globally, the main US market is independent of Binance Binance.US, which operates, is also licensed in Idaho. As of now, Binance.US is available in 46 states in the United States. According to Binance.US, it will reach compliance operations in all 50 states of the United States by the end of this year.

Changpeng Zhao (CZ) in Malaysia

Set up a professional hunter team and see initial results

With the sharp decline of encrypted assets such as BTC and ETH, the entire encrypted industry has begun to tighten, and a large number of companies have begun to lay off employees. and Binance The security compliance team is bucking the trend and will expand from 150 to 250 people.

The best defense is attack, Binance Applying it to compliance, in addition to active defense, it also starts to attack externally and crack down on illegal and criminal activities at the source. To this end, Binance Formed a team of professional hunters.

Join this January Binance Chagri Poyraz, who also served as Director of Sanctions Compliance, was promoted to Director of Global Sanctions in April, where he will be responsible for ensuring Binance Comply with global sanctions compliance requirements. Chagri Poyraz brings extensive anti-money laundering (AML) and sanctions compliance experience, joining Binance Previously, it was responsible for the same work at Coupang, South Korea's largest online shopping platform.

In April, Seth Levy and Steven McWhirter announced Binance, respectively serving as director of market surveillance and director of regulatory policy.

Seth Levy has over 20 years of experience in security, risk management, and user protection. Binance Previously, Seth served as the Director of Global Supervision at Citadel, a multinational hedge fund with an asset management scale of over US$35 billion. Earlier, Seth led a team in the Market Surveillance Division of the Financial Industry Regulatory Authority (FINRA) for the design and implementation of surveillance mechanisms for the U.S. stock market, investigating misconduct, and reviewing corporate compliance.

Steven McWhirter has more than 20 years of experience as a regulator and policymaker in the financial services and regulatory sectors. During his 9 years at the Financial Conduct Authority (FCA), Steven was involved in the development of the FCA's Crypto Guidelines and served as Secretariat Chief for the Global Financial Innovation Network (GFIN), a global network of 75 regulators and observers. In addition to this, Steven also worked for the Gaming Commission for 12 years.

Joined by Seth Levy and Steven McWhirter Binance The following month, Joshua Eaton, the former Deputy Attorney General of the Northern District of California, and Jarek Jakubcek, an expert in encrypted assets of the dark web team of the European Criminal Police Organization Cybercrime Center (EC3), also announced their joining Binance Served as Deputy General Counsel and Asia Pacific Intelligence and Investigation Director respectively.

Joshua Eaton is a former U.S. Army Attorney and Senior Staff Officer, and later a U.S. Department of Justice Attorney. Many of its former colleagues Tigran Gambaryan and Matthew Price joined earlier Binance. The addition of Eaton further strengthens the key role of the Public Prosecutor's Office in the investigation and prosecution of related crimes. Binance Global compliance, investigative, and law enforcement cooperation activities are supported.

Jarek Jakubcek is a leading global expert in cybercrime and has been driving Europol's operations in the field of crypto asset investigations. During his 7-year tenure at EC3, Jarek provided operational and strategic support to numerous large-scale cryptoasset investigation projects.

Assembling a professional team is only the beginning, in addition to helping Binance In addition to improving compliance requirements, changing the stereotype of the entire industry and reducing criminal behavior are also ongoing by professional teams. Previously, Binance Tigran Gambaryan, Vice President of Global Intelligence and Investigations, and Matthew Price, Senior Director of Investigations, joined forces with several countries to successfully dismantle a large-scale child sexual exploitation network called Welcome to Video, and investigated and prosecuted Helix, an illegal bitcoin mixing service. .

2022 is the 14th year of the encryption industry. It has experienced being unaccepted, recognized by some users, and now Become an important part of global finance. As more and more users begin to accept encrypted assets, compliance becomes even more important. As the trading platform with the most frequent user interaction, it is obvious that compliance is also required. The era of misappropriating user assets at will and participating in gambling with users will eventually pass.

Of course, the road to compliance is long and difficult, and it may be difficult to see results in the short term. But in the long run, it is beneficial to the long-term development of the platform. No, due to the 3AC liquidity crisis, the platforms that have misappropriated user assets have all suffered losses in different situations.

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