Bitcoin Global News (BGN)
April 10, 2019 -- ADVFN Crypto NewsWire -- Has Binance truly set the precedent for growing a crypto company that all others should follow? Pete Rizzo and CoinDesk seem to think so. In an article today, Rizzo even went so far as to suggest that Binance could be the top case study for all other future crypto companies to follow in this regard.
While it is true that Binance seems to be continuously growing, especially through the examples of BNB and Binance Launchpad, issues do exist with the company. Rising above all other problems is the question of Binance’s regulatory status, especially in the United States.
Yes, they appear to have been fully accepted in Malta and many other countries. In the United States, however, matters are a lot hazier.
As The Block points out, Binance basically operates outside of the USA on purpose to avoid having to answer many of the questions that its’ regulators would have. As of now, this strategy extends to just about anywhere in the world. From leaving China to settling in Malta, everything Binance does seems to be with the deliberate aim of maintaining its’ nearly non-existent know-your-customer policies.
Reportedly, Changpeng Zhao has even gone so far as to validate this by adding that the company is consistently registered in enough countries at once that they do not have to answer to one regulatory body. Not only does this go against the popular idea that they are headquartered in Malta, it raises two more important questions.
What, if anything, can regulators do when a company practices this sort of deliberate avoidance while not overtly breaking any laws? Will Binance’s
success cause others to adopt a similar approach or will they eventually slip up in a major way?
By: BGN Editorial Staff