Binance has launched a global campaign to obtain licenses from local regulatory authorities, including those in Asia-Pacific, EMEA, and Latin America, according to the exchange's CEO, ChangPeng Zhao (CZ).
CZ He said On Twitter that the exchange held an hour-long press conference to share the active steps it is taking to leverage compliance efforts with local financial regulators globally.
Key efforts include licensing at the grassroots level, working with regulators as more crypto regulations are introduced, and enhancing their efforts to ensure KYC compliance.
According to CZ, the motivation behind this initiative is to allow the exchange to continue adapting to the new regulations for the benefit of its customers.
Binance wants to get licenses and approvals
The first of the active steps involves the already launched campaign for exchanges to be regulated in all jurisdictions with an existing or upcoming crypto-regulatory framework.
“We have started the licensing and approval processes, which is an existing legal framework for crypto exchanges. This includes ongoing work in Asia-Pacific, EMEA, and Latin America. We will actively work with regulators as more crypto-specific frameworks are introduced. ”
As the largest cryptocurrency exchange in the world, Binance is most popular with retail traders and average cryptocurrency holders. Institutions prefer to use other similar services that are perceived as more regulated, such as Coinbase or Gemini.
However, the approval of Binance in jurisdictions such as North America, Europe and Latin America would open up its high liquidity advantages to institutional investors and, in turn, increase the adoption of cryptocurrencies.
Binance to improve KYC compliance
Regulatory authorities, including the US SEC, have forced crypto exchanges like Coinbase to comply with strict KYC procedures in an effort to flag illegal activities such as tax evasion, money laundering and financing of the terrorism.
Binance, which has always enjoyed more freedom than other exchanges, now says it is committed to increasing its vigilance to ensure KYC compliance for its clients. As such, Binance said that it will restrict daily withdrawal limits to 0.06 BTC worth around $ 2,000 for accounts with basic KYC verification.
Additionally, Binance has increased its recently implemented leverage limit for its Binance Futures product, which fell from 100 to 20 for accounts opened in the last 30 days.
"As of July 27, we will extend the limit of accounts open in the last 60 days."
The news follows the extensive pre-exchange attack by several financial watchdogs who have been calling out the exchange for operating within their jurisdictions without authorization.
It also comes a day after Binance US entity Binance US was rumored to be undergoing early structure changes in preparation for its new intentions to go public via an initial public offering.