FX hedge fund CEO, Su Zhu claimed in a recent tweet that Binance is the top-rated exchange for investors despite the low-regulation framework in which the Malta-based exchange operates.
Binance has the least regulations
As per frameworks by which exchanges are operating globally, Binance has the least amount of regulations. Large exchanges such as Coinbase, mainly operate in the US are broiled in regulations. In fact, the trading platform is known to work backwards to comply and obey rules from securities monitoring body, the Securities and Exchange Commission. South Korean, Japanese exchanges are highly regulated by their respective regulators.
Essentially Binance has invested in its primary task over time in developing policies which are preventive and in the protection of its investor community. Secondly it focused on the elimination of opportunities for scammers and money laundering criminals.
A sharp contrast, Binance’s primary focus is a digital asset -to-digital asset trading. Its other exchanges are located in Uganda where it offers tightly regulated fiat-to-digital asset services and Singapore where local regulatory requirements are harsh.
The advantage of digital asset-friendly Malta
The advantage for Binance is that it operates in a market such as Malta, but it does subscribe within EU’s approved policies and financial framework.
Secondly, Binance’s primary focus is on building processes and infrastructure which is secure and investor friendly. Hence, despite worldwide instances of exchange-thefts, scams; this exchange has been intact, un-hacked.
The track record for Binance has top-ratings essentially due to efficient communication services among community and executives.
More importantly, it is headed by one of the most innovative CEO’s in blockchain technologies currently, Changpeng Zhao. The leader has led by example, constantly tweeting about developments – updates, announcements hence constantly gaining the trust and approval of its users. Despite no regulatory compulsion, the CEO initiated third-party wallet/transaction analysis collaboration with Chainanlysis in October. During this event, Zhou said,
“By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.”
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