Binance's Commitment to Compliance and User Protection
Looking back on the past year, we've sure come a long way from the ups and downs brought forth by the pandemic. While most industries are slowly recovering, the blockchain ecosystem and industry as a whole witnessed incredible growth and expansive activity in 2021 — from highs, lows and everything in-between. It's safe to say 2021 was the year that the digital asset industry truly out-performed. The crypto market surpassed three trillion dollars in market capitalization and blockchain-based applications, including decentralised finance, garnered interest from retail and institutional investors — these are just a few of the movements that had heads turning. In addition, the rapid mainstream adoption of NFTs as it began disrupting the art world and industries beyond, shined the spotlight onto the crypto industry even brighter.
However, the eventful year was accompanied by lots of scrutiny as regulatory bodies seeked clarity about the rapidly growing industry. Binance immediately rose to the challenge to fill in the gray area as it consistently highlights the importance of regulation and compliance for the general growth of the industry.
Binance's Standpoint On Regulation
Some in the industry might argue that pushing for the need for regulation on a global scale goes against the ethos of the cryptocurrency and blockchain space — because the core of the industry lies with decentralization. However, here at Binance, we welcome the increasing involvement and actions from regulatory bodies and governments in the crypto space. Since the beginning, we have always emphasized a user-focused model, and our mission continues to be protecting users while encouraging innovation.
As our CEO and Founder, CZ stated:
"Before there were clear guidelines for the industry, we have always held Binance to the highest standard to prioritize our users' best interests — a goal that we share with regulators around the world."
Our Steps In Compliance And User Protection
Over the years, Binance has taken different steps to ensure compliance and protect its users globally:
Joined the National Cyber-Forensics and Training Alliance: In January 2022, Binance became the blockchain and cryptocurrency industry’s first to join the National Cyber-Forensics and Training Alliance (NCFTA), a nonprofit corporation focused on identifying, validating, mitigating, and neutralizing cybercrime threats. This is a move that further strengthens our commitment to fight against cybercrime, ransomware, and terrorism financing.
Binance tax reporting tool: Not too long ago, we launched a new API tool to allow Binance users to easily keep track of their crypto activities and ensure they fulfil their country’s regulator requirements.
Government and law enforcement support: We implemented a law enforcement request system that government and law enforcement agencies can use to submit information requests.
Secured an asset emergency fund: We're also one of the first cryptocurrency exchanges with a secure fund to safeguard users in extreme cases—also known as SAFU. The Secure Asset Fund for Users was valued at $1 Billion based on the opening price on January 29, 2022.
More Compliance hires: We grew our international compliance team and advisory board by 500% in 2021.
Commitment to fighting fraud and taking down cybercriminals: Binance’s commitment to ensuring the secure and sustainable growth of the global crypto ecosystem involves fighting different strains of ransomware and fraud.
Furthering The Conversation On Crypto Regulation
To ensure the industry continues to innovate responsibly while still providing a healthy path forward for future growth and mass adoption, we released the first-ever 10 Fundamental Rights for Crypto Users. We've outlined these 10 principles to serve as a guiding hand in regulatory discussions and the development of global frameworks for crypto markets. These user rights ensure safe and secure access to emerging technologies, liquidity and insurance, among a range of steps that will aid in protecting users and maturing crypto through responsible growth and innovation.
Having ensured that our user's safety and compliance are maintained at the highest level possible through our global compliance practice and user protection initiatives throughout 2021. We look forward to what we can bring to the industry and our users in 2022 and continue to strive to ensure that our efforts in regulatory compliance and our commitment to user protection are upheld.