http://fortune.com/2019/04/15/binance-regualtion/
Compliance focused strategy seems to be leading the way with Binance's recent partnership announcement with cyber security and blockchain forensics firm CipherTrace. Fraud and money laundering are real and if we can somehow avoid it at all costs that seems fair to me, what are your thoughts?
Compliance focused strategy seems to be leading the way with Binance's recent partnership announcement with cyber security and blockchain forensics firm CipherTrace. Fraud and money laundering are real and if we can somehow avoid it at all costs that seems fair to me, what are your thoughts?
The elephant in the room is whether they can maintain their current KYC process. They seem to be trying to do so by ramping up their blockchain analysis and selective KYC. I'm curious to see how much more common account freezes and forced KYC become for unverified users.
Quote
While Binance is confident that all of these activities are legal, others are not so sure. David Silver, a Florida-based attorney who has brought class action lawsuits against numerous cryptocurrency companies, believes Binance has been playing with fire.
“The crypto-to-crypto aspect helps hide what they’re doing and makes it harder for regulators to catch them. They’re going to need to legitimize because the world isn’t going to let them move massive amounts of money through countries in which they’re not regulated but have active users. That will eventually come to bite them in the ass,” said Silver.
“The crypto-to-crypto aspect helps hide what they’re doing and makes it harder for regulators to catch them. They’re going to need to legitimize because the world isn’t going to let them move massive amounts of money through countries in which they’re not regulated but have active users. That will eventually come to bite them in the ass,” said Silver.
I have a feeling he's right.
In a sense, what binance is aiming is to avoid or at least lessen the possibility money laundering or fraud that might occuring by using crypto exchange platform. Maybe they wanted to set a good standard as a top-one trusted platform by making sure to follow law in every jurisdiction.
No one wants to have a site used to money laundering because we all know that illegal. But at the same time the users should have the right to be anonymous, this is the main issue with cryptos because as The New Yorker said in 1993.
Quote
On the Internet, nobody knows you're a dog
