Crypto Cowboy Binance Wants to Play by the Rules

[jjbanks994]

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?

[1715405034]

1715405034

[1715405034]

1715405034

[1715405034]

1715405034

[1715405034]

1715405034

[Aero Blue]

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?

Crypto is supposed to be private and unregulated, it seems like it would only slow things down for everyone while the launderers would find another way...

[squatter]

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?

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.

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.

I have a feeling he's right.

[Ailmand]

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?

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.

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.

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.

[seoincorporation]

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?

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.

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.

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.

On the Internet, nobody knows you're a dog

 

[BitMaxz]

Ohh... I see that is why almost all ICO project out there is now asking for KYC verification because of the binance news.

I don't think it will be good for crypto but I believe for some user they are waiting for this for their own protection.

For me, I don't like to verify my name when exchanging something like an altcoin they will ask where did I get it or source of income just to monitor all our earnings and funds which is no more privacy if we tell.

Honestly, investors are not a problem the only problem in crypto is these ICO projects almost all ICO projects are scam. They should ask KYC verification to the CEO or owner of the project to make sure that the owner of the project is real and other members who involved in the project.

[alexcopper]

Ohh... I see that is why almost all ICO project out there is now asking for KYC verification because of the binance news.

I don't think it will be good for crypto but I believe for some user they are waiting for this for their own protection.

For me, I don't like to verify my name when exchanging something like an altcoin they will ask where did I get it or source of income just to monitor all our earnings and funds which is no more privacy if we tell.

Honestly, investors are not a problem the only problem in crypto is these ICO projects almost all ICO projects are scam. They should ask KYC verification to the CEO or owner of the project to make sure that the owner of the project is real and other members who involved in the project.

I think we are still figuring it all out ultimately. Right now with the laws and the way things are panning out, it looks like KYC might be the best thing to handle all of the drama between ICOs. It would make the most sense to check the CEO though

[pooya87]

Ohh... I see that is why almost all ICO project out there is now asking for KYC verification because of the binance news.

it is mainly because they want an additional revenue since they can no longer raise the same ridiculously high amount of money from their useless tokens. now they ask for KYC so that they have something to sell on dark markets and make some profit. every ICO participant and bounty hunter's identity is already available in dakrnet for purchase!

[Kakmakr]

The ultimate fate of ventures like this that started with a "anonymous" goal, will be that it will gain a lot of popularity and people will support these services, but once they grow large enough, regulators start to take notice of them and then the pressure to legitimize their business or close their doors, comes down on them.

They want to make money, so they bend over to the regulators demands and then anonymity is sacrificed and the users are thrown to the wolfs. <Examples : Circle / Localbitcoin etc.>

[Haunebu]

The ultimate fate of ventures like this that started with a "anonymous" goal, will be that it will gain a lot of popularity and people will support these services, but once they grow large enough, regulators start to take notice of them and then the pressure to legitimize their business or close their doors, comes down on them.

They want to make money, so they bend over to the regulators demands and then anonymity is sacrificed and the users are thrown to the wolfs. <Examples : Circle / Localbitcoin etc.>

I agree. Already heard about this news through several threads in this forum recently, but it will get regulated sooner or later. I was honestly surprised to hear that LocalBitcoins needs to comply with the KYC requirements by Nov 2019 which seriously sucks.

Popularity is a double-edged sword indeed in this case.

[leea-1334]

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?

Binance wants to play by the rules but only the rules it can play with. Why else would they move from jurisdiction to jurisdiction if it was not to enjoy the best tax rules? China move to Japan was understandable,,, they wanted to run a business and they could not from China. But Japan is totally crypto friendly and Bitcoin is a recognized tender there. Why else would they move to Malta?

[Wildwest]

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?

Crypto is supposed to be private and unregulated, it seems like it would only slow things down for everyone while the launderers would find another way...

If it is allowed to continue, many victims will even cause bankruptcy. In my opinion, the regulation is valid, provided that it maintains a decentralized blockchain system.
I am very supportive of the steps taken by the binance

[kryptqnick]

I think that the intention of Binance to comply with regulations to prevent financial crimes is good. What might be problematic is that the AML policies are ineffective. They put a lot of pressure on users, whereas the biggest threat is clearly the exchange/company itself. We have seen it before with banks, the biggest money launderers. Intruding into the privacy of individual low-income users.

[Beerwizzard]

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?

Crypto is supposed to be private and unregulated, it seems like it would only slow things down for everyone while the launderers would find another way...

Here is what you have to do: open your crypto related business, do not legally register it because you are working with crypto and it supposed to be free, when an officer comes to you tell him the same, keep repeating the words about free crypto to your cellmate.

Even if you work with crypto you have to obey the laws of your country. Seems like Binance is developing their AML service to prevent different kinds of arrests and sanctions against them. That's a normal and logical thing.

[traderethereum]

I think fraud and money laundering will still exist with or without cryptocurrency. As long as people can find a way how to do fraudulent and money laundering, they can easily do that thing again and again without anyone can stop. I think that will be good for binance because they can try to reduce the fraud and money laundering level from their members so they can make sure that their site is "clean."

[stompix]

O yeah, the company that fled Japan during the night denying that they can't respect financial regulation there and fled to the last off-shore in EU is thinking about playing by the rules..
Playing what, roller coaster tycoon or zootycoon?

All those news lately about Binance wanting regulation, welcoming regulations making me think down there they are in some really deep trouble and when this will burst people will start seeing mtgox as a happy chapter compared to this one.

They want to make money, so they bend over to the regulators demands and then anonymity is sacrificed and the users are thrown to the wolfs. <Examples : Circle / Localbitcoin etc.>

I agree. Already heard about this news through several threads in this forum recently, but it will get regulated sooner or later. I was honestly surprised to hear that LocalBitcoins needs to comply with the KYC requirements by Nov 2019 which seriously sucks.

LB is dead for me
Many of the users I've dealt with during the years have gone silent, the new ones offer prices with quite a heavy % on bitstamp, less and less banks for national transfers...Really not attractive anymore.



 

[demenBTC]

Ohh... I see that is why almost all ICO project out there is now asking for KYC verification because of the binance news.

it is mainly because they want an additional revenue since they can no longer raise the same ridiculously high amount of money from their useless tokens. now they ask for KYC so that they have something to sell on dark markets and make some profit. every ICO participant and bounty hunter's identity is already available in dakrnet for purchase!

your opinion is very reasonable, but not all ICOs are like that, there are still a lot of ico that are real by doing KYC because a regulation is one of the requirements to open ico sales

[Tim1996]

Binance is just another exchange like bittrex, they are based in Hong Kong so trying to look more appealing to customers with these regulations, thats it.

[BrewMaster]

the days of centralized exchanges are numbered in my opinion and the more they push for more restrictive rules that are bad for the whole community the faster they go in direction of becoming obsolete.
the decentralization of exchanges and most other services (such as market places) have begun.

Binance is just another exchange like bittrex, they are based in Hong Kong so trying to look more appealing to customers with these regulations, thats it.

but "customers" look for security and assurance that they are not going to get hacked or scam them.
regulations and KYC are not guaranteeing that. in fact Bittrex scammed people right after they implemented KYC.

[pawanjain]

Where anonymity is involved, money launderers get a bright opportunity to play around with money in that area. The only way to stop it is to alter the framework which in this case can be called as regulaiton.
Hence the anonymity concept is disrupted. I would say that binance is doing it's best thinking of the possible problems it could face in future and making itself ready for upcoming problems.
It's at least thinking of tackling such problems while it's competitors are doing nothing.