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Binance joins a lobby group as criticism of the exchange mounts

Binance joins a lobby group as criticism of the exchange mounts

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According to a Dec. 20 press release from the exchange, Binance has joined the Chamber of Digital Commerce, a US crypto industry lobby group. The move comes after Binance was criticized for allegedly being unregulated.

Binance Vice President of Public Affairs Joanne Kubba expressed hope that the partnership would help lead to clear regulations for the crypto industry in the US, stating:

“As an organization at the heart of the industry’s rapid growth and complex regulatory environment, it is imperative for Binance to work hand-in-hand with policymakers, regulators and industry groups such as the Chamber of Commerce. Such work is fundamental to our shared mission of promoting the sustainable development of sound cryptocurrency and blockchain regulations that ultimately ensure user protection.”

According to its website, the Chamber of Digital Commerce advocates for a variety of public policies, including tax parity for digital assets, AML/KYC regulations for crypto exchanges, more regulatory clarity for security tokens, and central bank digital currency (CBDC) research. among other.

Through its Political Action Committee (PAC), the chamber made contributions to three congressional candidates in 2022: Patrick McHenry (R-NC), Blake Masters (R-AZ), and Ron Wyden (D-OR).

Related: New House Financial Services Committee chairman wants to delay crypto tax changes

Binance controversy

Since the collapse of FTX, calls for crypto regulation have increased, and Binance has come under particular scrutiny for being a high-volume exchange with no clear geographic location or regulatory status.

In a December 14 congressional hearing, Kevin O’Leary claimed that Binance caused the collapse of FTX and is an unregulated monopoly.

Binance CEO Changpeng Zhao answered on O’Leary’s claims in a Dec. 15 CNBC interview, in which he called them “a bunch of nonsensical claims.”

On Dec. 12, Reuters published a report claiming US Department of Justice officials were deciding whether to indict Binance executives for financial crimes. The executives have not yet been charged, but the report prompted large outflows of stablecoin and other cryptos from Binance.

To prove that it is trustworthy and solvent, Binance has published an audited Proof-of-Reserve. However, the proof-of-reserve has been criticized for not disclosing Binance’s corporate structure or internal controls.

Binance.US, a separate exchange with the same namesake as the global trading platform, previously had joined the Chamber of Digital Commerce in 2020. Its rival FTX also contributed to US politicians. However, this appears to be the first time that the international Binance organization has directly affiliated with a US lobbying group.

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