Binance has been a constant visitor of the headlines for a while now. Regulators from across the world were seen squabbling with the exchange over issues pertaining to license. While exchange had to deal with an array of regulators all at once, the CEO of Binance Changpeng Zhao aka CZ has put forth the need for a centralized entity.
Centralized systems have existed for the longest time. The cons that come along with these systems stood out for the creator of Bitcoin, Satoshi Nakamoto. This further pushed this anonymous person to roll out the first and the largest cryptocurrency. The term “decentralization” was a selling point of the crypto-verse. However, with time the term began fading and centralization took over most of the crypto market.
After Binance’s tiff with several regulators, CZ seemed to have come to the conclusion that the requirement for a centralized entity was a must.
Binance takes the other route
Crypto platforms cannot survive without the involvement of regulators. Therefore, it further becomes necessary for crypto exchanges to comply with the regulations put forth by financial watchdogs.
In a recent interview with the South China Morning Post, CZ addressed the ongoing crackdown on its branches across the globe. He added,
“As we run a centralized exchange, we have come to realize that we need to have a centralized entity to work well with regulators. [..] We need to have clear records of stakeholders’ ownership, transparency, and risk controls. As the largest player in the industry, we need to prepare ourselves for the shift. We are making changes to make it easier to work with regulators.”
Binance is a prominent name in the crypto-verse. The recent takedown of the financial regulators from the UK, Cayman Islands, Malaysia, Singapore, Japan, Ontario, Italy had completely shattered the exchange. While Binance lost its spot in several of the aforementioned regions, the exchange’s efforts in complying with regulators from the other regions have been prolonged.
The platform was even seen hiring several experienced members that would further aid the exchange in understanding and complying with the regulators in a better way.