Changpeng Zhao (CZ), the CEO and founder of Binance, the largest cryptocurrency exchange in the world, emphasized the importance of regulatory compliance in the crypto industry during his speech at the Fintech Forward 2023 conference in Bahrain earlier this month. CZ highlighted that regulatory compliance is a crucial factor in building trust within the industry and can also facilitate partnerships with traditional financial institutions.
"There’s many, many different aspects [of building trust], but I think regulatory compliance is a key one. Also, regulatory compliance unlocks other partners working with you, especially from traditional financial industries, so then this way, we can bridge the two industries together. That’s very important, too. Trust is built over a long period of time," CZ stated.
CZ further elaborated on the components of building trust, including maintaining a track record of security, prioritizing clients, and having third parties validate services. These factors contribute to establishing a reputation of reliability and dependability in the crypto industry.
Binance, which operates globally, has been actively pursuing regulatory compliance in various regions. The exchange recently announced partnerships with fiat companies to enhance services for its European users. These partnerships aim to facilitate the conversion of cryptocurrencies to fiat and vice versa, making it easier for European users to manage their assets, CZ said.
Binance has obtained regulatory licenses and approvals in multiple European countries, including France, Italy, Lithuania, Spain, Poland, and Sweden. The exchange is also licensed in countries such as Australia, New Zealand, Japan, Bahrain, Thailand, South Africa, and El Salvador.
Binance became the first fully licensed crypto exchange in El Salvador in August. The exchange's head of Latin America, Min Lin, expressed the company's commitment to working with regulators worldwide to establish global standards for the crypto and blockchain industry.
Binance achieved another milestone as it became the first major global exchange licensed to operate in France. Binance France received a Digital Asset Service Provider (DASP) registration from France's financial regulator in May 2022. The CEO of Binance France, David Princay, hailed this registration as a significant advancement for the crypto industry in Europe.