Rejected By Several Countries, Crypto Trading Faces Many Regulatory Challenges

There is still plenty of room for cryptocurrencies to grow despite the regulatory challenges. (photo: Executium/unsplash)

JAKARTA - Binance CEO, Changpeng Zhao, Wednesday, July 7 stated that the current cryptocurrency exchange is still not getting things right and has a lot of room to grow. This follows a crackdown from regulators around the world.

“Compliance is a journey – especially in a new sector like crypto”, said Changpeng Zhao, CEO of Binance, in his blog.

"The industry still has a lot of uncertainty", he added. “We also recognize that with growth comes more complexity and more responsibility”.

Last month, the UK Financial Conduct Authority restricted Binance from conducting regulated activities in the country. Binance's UK unit withdrew its application to register with the regulator in May for not meeting anti-money laundering requirements.

Binance, the world's largest cryptocurrency exchange by trading volume, was ordered to add a prominent notification on its website and app, notifying users in the UK. The explanations and notices concern what activities are not permitted under UK finance law.

Meanwhile, regulators in Canada, Japan, and Thailand have also issued warnings to companies. Japan's Financial Services Agency said cryptocurrency exchanges were operating in the country without a permit. Meanwhile, Canada's Ontario Securities Commission accused him of failing to comply with local regulations.

Last week, the Securities and Exchange Commission of Thailand also filed a criminal complaint against Binance, accusing the company of operating in the land of the White Elephant without a permit.

“As a four-year-old startup, Binance still has a lot of room to grow”, said Zhao. “Binance has grown really fast and we don't always get everything right, but we are learning and improving every day”.

"We look forward to clarifying and reaffirming our commitment to partnering with regulators, and that we are proactively recruiting more talent, implementing more systems and processes to protect our users", he added.

Zhao said Binance is taking a number of steps to improve regulatory compliance in each country. That includes increasing hiring, partnering with anti-crime organizations, and localizing operations in markets like the US.

But increased regulatory scrutiny has weighed on the nascent crypto market in recent months. China has even cracked down on digital currency mining amid concerns over its environmental impact.