binance-hopes-to-get-the-german-license

Binance hopes to get the German license

Posted on

Image Source: FreeImages

Binance is among the growing list of cryptocurrency businesses seeking to obtain a license from Germany’s financial regulator, the FCA. Binance CEO, Changpeng Zhao (CZ), has revealed that the company is in talks with the German regulator over obtaining an official license to operate in the country. Binance is one of the world’s largest digital asset exchanges by volume. It currently operates from Malta and Japan and opened an office in Uganda last year. CZ made this admission during a wide-ranging interview with Breaker Mag, where he also explained why he relocated to Malta and what he thinks of other exchanges acquiring their own token or token system.

Binance and the FCA

Binance has been found to be in violation of money laundering laws in Hong Kong and Japan, amongst other jurisdictions. CZ believes that the regulatory issues Binance has encountered in countries like the Philippines, Taiwan, and the US have trickled down to Germany, which has had a “wait and see” approach. “We are very careful about that,” CZ said. “It’s not about regulation for regulation’s sake.

We don’t want to be regulated for the sake of being regulated.” CZ noted that Binance is not “actively” seeking a license in the United States. However, the company is interested in obtaining a license in a jurisdiction like Germany, which boasts a robust financial sector. CZ said that while Binance wants to be compliant with all financial regulations, the company sees itself as a bridge, not a barrier, between the traditional and digital finance sectors.

Crypto Regulations Around The World

Japan and the US are examples of countries that have imposed strict regulations on the cryptocurrency industry. CZ thinks that the approach taken by Japan—which recognized cryptocurrencies as legal tender—and the US—where regulators are working on a “uniform” regulation for virtual assets—is the right one. CZ said that the “ad hoc” regulation adopted by some jurisdictions has been “disastrous” for the industry. While Malta has not imposed any stringent regulations on the cryptocurrency sector, CZ believes that it would take a “balanced approach” should a need for regulation arise.

Binance’s Malta Story

CZ’s exchange was forced to relocate from Hong Kong to Malta after the former issued a “very, very strict” cryptocurrency trading ban. Binance also encountered regulatory issues in Japan and the US, which had a “wait and see” approach to cryptocurrency regulation. CZ said that he had been eyeing Malta as a destination for Binance even before the country made headlines for its blockchain-friendly policies.

The Binance CEO said that he likes the “general environment” in Malta, where “people are reasonable” and the government is “easy to deal with”. CZ added that the Maltese government “didn’t invent anything new” when it came up with its blockchain policies. He added that Binance is “just trying to fit in” with the rest of the blockchain industry in Malta.

Coin-run Exchanges and Acquiring Your Own Token

Many exchanges have acquired their own token or token system in the hopes of cashing in on the decentralized dream. CZ said that such exchanges are “misguided” and that they are “burning money”. CZ added that these exchanges are “wasting money”, as they should be focused on improving their core business.

He said that while he is not “against token systems”, the exchanges that have acquired their own token or token system “don’t have a viable product”. CZ also said that the exchanges that have acquired their own token or token system are “howling at the moon”, adding: “You can’t just do that. You can’t just say, ‘We’re going to create a token’.”

The Future of Crypto Regulation

CZ said that he sees “huge regulation” in the future of the cryptocurrency sector and that he thinks that the industry is “welcoming it”. He added that “regulators are coming”, noting that some jurisdictions might be able to impose regulations on all virtual assets, including cryptocurrencies and tokens, as a whole. CZ also thinks that regulators are taking a “very long-term” and “calm” approach to the regulation of the cryptocurrency sector.

He added that he believes that regulators will start regulating the cryptocurrency sector in the next 18 months. CZ added that the industry’s “very bad” reputation precedes it, which is why he is “very happy” to see regulators coming in and cleaning things up.

Conclusion

Binance is one of the biggest exchanges in the world, and it could be poised to get even bigger if it manages to secure a license from Germany’s financial regulator. The company has also been very successful in Malta, where it moved after being forced out of Hong Kong. As the industry continues to grow, it will only be more important for regulators to make sure that exchanges are compliant, which would allow them to protect investors and make sure that the crypto markets are fair and safe for everyone.