Binance crypto regulations - Crypto exchange giants, Binance in a statement has urged crypto regulators to take a fair approach to regulate the crypto
Binance crypto regulations – Crypto exchange giants, Binance in a statement has urged crypto regulators to take a fair approach to regulate the crypto sector to ensure continuous growth.
Binance made the statement in a recent response to a consultation from the U.K. His Majesty (HM) Treasury. The talk was in regard to digital asset regulations. Binance also asserted that the principle of crypto regulatory bodies should be consumer protection, market integrity, and financial stability.
Furthermore, it added that a “disproportionate regulation” will eventually cause financial instability issues due to investors seeking out other markets that are free of these rules.
Equal regulations for similar risk assets
Binance continues by agreeing that crypto assets should be regulated and also pointing out the importance of proper crypto regulations. Nevertheless, watchdogs need to make sure that it does not influence the non-financial status of a crypto asset.
The exchange also urges watchdogs to create consistent rules. Furthermore, it implied that crypto assets should be treated the same way as other traditional financial assets that are of similar risks.
Binance also added that regulatory bodies should consider the fact that the balance of risk associated with “clearing, settlement, auditability, transparency, and governance.” constantly changes with new technology.
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In addition, Binance said that regulatory bodies should create regulations that adapt and accommodate different crypto assets and their underlying technology. The exchange also added that regulators should create “pragmatic” rules for digital assets to make sure that crypto consumers have access to the “right information.”
Also, Binance suggested that cryptocurrency exchanges should be responsible for analyzing and auditing crypto issuers and also for listing and delisting new crypto assets.
That said, exchanges would be held responsible for any violations. The exchange also believes that once there is “greater surveillance” of the markets, regulatory abuse will reduce.
Finally, Binance also added that regulators should clearly define decentralized finance as its “future development” is uncertain.