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Here’s what would happen if Binance loses the race it meets
- Regulators around the world are looking at the Binance exchange despite increasing rules.
- The lack of rules about the cryptocurrency space creates controversy among exchanges in different jurisdictions.
- Regulatory repression of exchanges hinders users of existing platforms despite the lack of a legal framework.
- They want to fill Gemini, Kraken and other crypto exchanges to question Binance’s dominance.
Binance is being monitored after regulators continued to find irregularities in their business practices. In addition, cryptocurrencies are a new class of assets, and the legal framework is yet to be installed. Each country is working on its own position by turning the exchange around digital assets into a model that is difficult to achieve. Interacting with speculative assets is dangerous in more ways than one, as market interaction is not fully advocated.
Binance finds no way out
Binance is the largest cryptocurrency exchange in terms of daily trading volume, with $ 14 billion in trading assets. In contrast, exchanges like Gemini are only $ 117.7 million; however, according to Bloomberg, Cameron Winklevoss noted that companies like Gemini are trying to win the “long game” they are fulfilling.
Increased regulatory action in countries such as Japan, Thailand, the Cayman Islands and the United Kingdom prompted Binance to expand its compliance group. While this action is a sign of the maturity and mainstream of cryptography, CZ, the owner of Binance, reflected on the “regulators” in a tweet.
However, Binance has reaffirmed its stance on moving to higher compliance standards. Despite their best efforts, the provider of the Clear Junction payment solution continued Barclays (LON 🙂 and Santander (MC 🙂 Banks will stop processing Binance payments in the UK after the UK Financial Conduct Authority ruled that Binance has no regulated activity.
The regulatory landscape is difficult to navigate for cryptocurrencies. Despite the tendency to govern rules to increase compliance standards, the study of exchange is biased. Binance released a number of compliance plans, some of which are in effect, such as the Binance academy or “doubling the regulatory compliance team”.
What if Binance doesn’t lead …
The Binance effect that was governing “Binance” in 2018 was similar to the current Coinbase effect. BitGo’s Horowitz argued that competition is ignored when it adds value to the entire industry. However, as CEO Gemini argued, crypto exchanges are in a “race,” ensuring that they will become unique once they are fully complied with.
The FATF, the patron saint of AML, is reviewing the current crypto landscape; however, DeFi’s appearance blurred the lines even further in the market. Binance is a centralized organization and is tied to a strict regulatory framework. The exchange is under pressure for regulators because it represents the basis of crypto transactions. Binance’s overall result will be a precedent for other crypto exchanges.
Flipside
- Users in the UK can still access and save Binancera using other methods that meet FCA standards
- Binance is the equivalent of Coinbase, which has been excluded due to its Chinese association.
- The fulfillment race means that exchanges are waiting for more significant exchanges to capitalize on the market.
About the future?
Binance’s legal entry has been debated because there is no head office. According to a WSJ article, Binance users had their accounts locked in the Bitcoin landfill and were unable to leave their posts. Verge says “Binance can fuck its users” without any consequences because they are unregulated.
Such activities have taken place in regulated and compatible exchanges. Kraken has secured a bank letter in Wyoming, and other exchanges are pushing for a fairer game by creating a Virtual Commodity Association. However, the current US exchange rate seems to be a way to clear the record of past actions.
If Binance crumbles and exists, the game is an obvious question. Compliance implies anonymity and privacy will no longer exist, and traders and cryptographic users will be subject to the same AML rules as banks. In addition, Binance users will be analyzed according to their location, which means that the crypto playing field will be concentrated in the US.
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