Crypto Regulation: A Brief Background

Unlike fiat, crypto cannot be governed using the same fiat currency regulations central banks use. Instead, a more nuanced approach is needed for crypto regulations. This is why we’ve gathered policymakers to talk about regulatory changes that will set the stage for future crypto developments, including Web3 adoption and customer security.

Currently, crypto regulations are still fractured as there is no global regulatory framework to inform companies on best practices when building their projects. For instance, there are no global solutions in the market for complying with the Financial Action Task Force (FATF) Travel Rule, which requires businesses to collect and share personal data in each transaction. This lack of standardization is likely to cause confusion and hinder mass adoption of crypto.

In addition, the rate of crypto adoption differs from country to country. Some countries, like France, may be more open to blockchain technologies than others. As the openness to blockchain and crypto varies, exchanges and Virtual Asset Service Providers (VASPs) may find it difficult to accommodate different markets in the absence of an established regulatory framework.

This is why discussions about crypto regulation is important. Both overly rigid regulations and weak policies will not provide a stable environment for crypto to flourish as an industry.

Is Regulation Important?
Binance believes that mass adoption can only be achieved through building a trustworthy ecosystem. To do so, we’ve taken steps to come up with best practices that instil in our users trust in us and our platform. These best practices include implementing KYC / AML protocols, heightened security measures, and being a trustworthy service provider in the eyes of governments and central banks . We’ve obtained licenses in Bahrain, Italy, Dubai, France and more because we recognize the value of operating in a stable regulatory landscape.

And now, we’re taking the opportunity to connect you with policymakers and key players in the space to answer your questions.