- Binance co-founder Yi He speaks out against allegations of non-compliance, suggesting that if Binance is non-compliant, so is every other global trading platform.
- Paysafe Payment Solutions, Binance’s European banking partner, will cease offering its embedded wallet solution to the exchange across the European Economic Area (EEA) from September 25.
The narrative surrounding Binance’s compliance with international regulatory standards has been given a fresh perspective by the cryptocurrency giant’s co-founder, Yi He. Yi He, who typically remains in the shadow of the more vocal CEO Changpeng Zhao, has voiced her views on the global attempt to regulate the digital asset sector, which she perceives as an inevitable and largely positive progression.
Highlighting Binance’s efforts towards regulatory adherence, Yi He expressed the firm’s conviction that they are fully compliant and cooperative with the global regulators. Her contention, as relayed in a recent Bloomberg interview, is that if Binance falls short of compliance, it is likely that all other international trading platforms do too.
This defence surfaces amidst increasing scrutiny of Binance by regulatory bodies worldwide. The US Securities and Exchange Commission (SEC) has notably taken legal action against Binance and CEO Zhao, accusing them of selling unregistered securities and mishandling customer funds. Binance, however, refutes these allegations, maintaining that they have always cooperated with regulatory authorities.
The stance towards compliance extends beyond verbal defence. Binance, along with its US affiliate, has recently entered into an agreement with the SEC to ensure US customer assets remain within the country until a comprehensive lawsuit filed by the regulator is settled.
However, the cloud of regulatory scrutiny appears to be impacting Binance’s partnerships. Paysafe Payment Solutions, Binance’s European banking partner, has announced it will terminate its embedded wallet solution for the cryptocurrency exchange across the European Economic Area (EEA) from September 25. This change follows the reports that Binance will alter its provider for euro deposits and withdrawals through the Single Euro Payments Area (SEPA), as Paysafe will cease offering these services to Binance users.
Yi He’s comments and Paysafe’s decision underscore the growing tension between cryptocurrency exchanges and regulatory authorities. As the digital asset landscape evolves, compliance remains a complex issue, compelling crypto giants like Binance to adapt their strategies and confront the challenges head-on.