Binance has come under scrutiny from regulators globally. The crypto exchange said that it will take a more proactive stance to compliance and stopped its Hong Kong clients from opening new derivatives with immediate effect, according to the latest reports coming from CoinDesk.
The same online publication noted that existing Hong Kong account holders have 90 days to close their open positions, the exchange announced Friday.
It’s been also revealed that CEO Changpeng “CZ” Zhao said in a tweet that the exchange would take a more proactive approach to compliance.
.@binance pivoting from reactive compliance to proactive compliance. Stay tuned.
— CZ 🔶 Binance (@cz_binance) August 6, 2021
A lot of regulators including the U.K.’s FCA have said in recent weeks that Binance is not authorized to conduct regulated activities in their countries.
At the end of July, Malaysia ordered it to stop operations in the country.
A lot of banks, including HSBC and Banco Santander have blocked payments to the exchange.
Regulatory compliance is a journey
CZ responded to these pressures back in July in an open letter in which he described regulatory compliance as a “journey.”
He said that its development is similar to those of the automobile industry where “laws and guidelines were developed along the way.”
As CoinDesk pointed out, CZ said a while ago that “Compliance is a journey – especially in new sectors like crypto.”
He also noted the crypto industry contained a lot of uncertainty. “We also recognize that with growth comes more complexity and more responsibility.”
The crypto space has been developing and growing with the speed of light, especially back in 2020 and 2021, when the world has been in one of its biggest crises ever.
The fact that the crypto space is growing and getting stronger in such global disastrous times only shows the strength and power that cryptos hold. Stay tuned for more news.