Last Updated on December 21, 2022 by Bitfinsider
In the United States, Binance’s regulatory activities are intensifying. The world’s largest cryptocurrency exchange by trading volume said today that it has joined the American lobbying group Chamber of Digital Commerce to “help establish policies that benefit and protect users.”
Binance stated that it would “educate, advocate, and bring forth solutions” to help define crypto policy in the United States upon joining the Executive Committee.
The Chamber of Digital Commerce asserts that it is the largest organization of its kind in the world and educates government officials on the usage of digital assets and blockchain-based technologies.
The American entity of Binance, Binance.US, joined the group in 2017. Other notable members include traditional banking institutions such as Citi, Visa, and MasterCard, as well as crypto sector leaders such Dapper Labs, Ripple, and Circle.
Binance’s VP of Public Affairs, Joanne Kubba, said in a statement: “As an organization at the crux of the industry’s rapid growth and complex regulatory environment, working hand in glove with policymakers, regulatory bodies, and industry groups like the Chamber is imperative for Binance.”
The decision by Binance comes as American politicians scramble to figure out how to regulate the cryptocurrency market. The massive collapse of digital asset exchange FTX in November was a wake-up call for lawmakers, since the company’s clients—many from the United States—lost crypto assets worth potentially billions of dollars.
Reuters reported earlier this month that U.S. officials are considering pressing criminal charges against Binance, including its CEO and founder Changpeng “CZ” Zhao. The potential charges stem from a 2018 examination into Binance’s compliance with anti-money laundering and sanctions laws.
CZ’s announcement that he will liquidate Binance’s holdings of FTX’s native token, FTT, sparked a liquidity crisis and contributed significantly to FTX’s demise. Then, he said that Binance had signed a non-binding letter of intent to acquire FTX in order to assist clients, but backed out the next day after learning the scope of FTX’s difficulties.
A few days later, FTX filed for bankruptcy, destroying the entire cryptocurrency market and a number of entities having exposure to the corporation. Since the collapse of Terra in May, this type of contagion has dominated the bitcoin market.
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