Crypto Cowboy Binance Wants to Play by the Rules

[nimiq.cafe]

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.

I expect DEX and marketplace without KYC to be banned at some point or another if they ever get too successful (it's not because it's decentralized you can't make it a pain in the ass to access).
The serious DEX we are currently seeing coming close to release are mostly about being non-custodial, not so much about being anonymous.

[1715507256]

1715507256

[1715507256]

1715507256

[1715507256]

1715507256

[1715507256]

1715507256

[1715507256]

1715507256

[manok jepang]

regulations and limits on verification can be significantly tightened, because the war against money laundering will be topical for the Binance administration. Meanwhile, we have practical freedom of action and wide-ranging trade opportunities.

[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.

I expect DEX and marketplace without KYC to be banned at some point or another if they ever get too successful (it's not because it's decentralized you can't make it a pain in the ass to access).
The serious DEX we are currently seeing coming close to release are mostly about being non-custodial, not so much about being anonymous.

i am not sure what "non-custodial" exchanges exactly mean but if it is about you being in control of your funds not the exchange then it makes sense for them to gain traction since anonymity was never as important as having control and having some privacy.

[jdarren]

my question then becomes should we just disregard all of the scams and large amount of funds that are being funneled and stolen from innocent people? I just find companies like ciphertrace giving more people hope and confidence that they're funds are safe. if we want more people to use crypto they need to feel safe.

[vit05]

Long tail.

The market will be bigger and bigger, that's what we have to bet on. And if the market is really big, we'll have options for everyone. Probably exchange deregulated, do not ask for KYC or even completely decentralized will exist.

But Binance wants to attract more and more institutional investors. And for that it has to conform to some regulations.

[squatter]

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.

That might work fine for cryptocurrencies and tokens, but what about fiat? Fiat exchanges are the most bogged down by concerns about AML/KYC, licensing and regulations. We can tokenize fiat to work with a DEX, but how do we get that fiat money into people's bank accounts?

[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!

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

ICOs are not regulated, this whole market is not regulated, there is no law enforcing them to comply by KYC rules but 90% of them add that. then we have some that are forced by the platforms such as Binance to do that which again is not by any "law" or "regulations".
not to mention that i wouldn't call any ICO "real" as long as all they do is raise funds and then go away!

[squatter]

ICOs are not regulated, this whole market is not regulated, there is no law enforcing them to comply by KYC rules but 90% of them add that.

The SEC chairman has said virtually all ICOs he has seen fall under existing securities laws. He also said that under existing law, securities transactions paid in cryptocurrency entail the same AML/KYC requirements as cash payments:

Second, brokers, dealers and other market participants that allow for payments in cryptocurrencies, allow customers to purchase cryptocurrencies on margin, or otherwise use cryptocurrencies to facilitate securities transactions should exercise particular caution, including ensuring that their cryptocurrency activities are not undermining their anti-money laundering and know-your-customer obligations.[7]  As I have stated previously, these market participants should treat payments and other transactions made in cryptocurrency as if cash were being handed from one party to the other.

So, if an ICO is making its offering available to US residents, they are definitely regulated by the SEC and other US agencies. Even if they prohibit US residents, other countries (or blocs like the EU) have AML/KYC regulations too.

I think the "wild west" days where everyone thought no laws applied to cryptocurrency are pretty much over.

[Ipwich]

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...

Unfortunately, the government won't allow it.
We like to be not regulated but we don't have our own government, we are just using a tech which is decentralized but majority
of the people are still not accepting bitcoin and that requires our bitcoin to be converted into fiat, now the regulation will come in.

[okala]

Binance is taking the right action in the right direction by way of minimizing the rate of money laundering through cryptocurrency which have raised lots of concerns to the entire cryptocurrency industry lately with government seeing cryptocurrency as just a tool for laundering of money and illegal use for founding terrorism. Some one need to put things right and binance have taken the first step.

[aad140386]

I support for regulation from the other side that there should be clear rules of the game and a regulatory framework that protects investors or just people who own a cryptocurrency. For example, from the tyranny of crypto exchanges, from scam crypto exchanges or management fraud. Of course, anonymity is cool. But big money will never enter the market in which there are no clear and understandable rules of the game. Investors must be protected. And large investors are very worried about protecting their capital. Now there is no regulatory framework that would protect cryptocurrency investors. Therefore, I only support these initiatives.

[proTECH77]

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?

For Binance to play by the rules will create more slow-work in the world of cryptocurrency. Although fighting money laundry is good for our economy but will defeat the purpose of cryptocurrency in my opinion. If these rules are not strict, then let it be as they intend, maybe those fraud and money laundry individuals will find another root.

[alexcopper]

honestly I think that more exchanges are going to move towards compliance. companies like CipherTrace aren't planning to look on each person's purchase but instead look for large amounts of money moving

[pushups44]

Binance is increasingly becoming the Amazon of cryptocurrencies, so they are going to cover all of their bases to ensure they are compliant in combatting money laundering. More than likely their team of lawyers has urged them to be proactive in being financially compliant to prevent potential friction with various governments around the world.

[jdarren]

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?

For Binance to play by the rules will create more slow-work in the world of cryptocurrency. Although fighting money laundry is good for our economy but will defeat the purpose of cryptocurrency in my opinion. If these rules are not strict, then let it be as they intend, maybe those fraud and money laundry individuals will find another root.

I would like to know what everyone means by 'slow work' I dont think it will slow any of the processing but instead cut out the major players in money laundering. I doubt Ciphertrace plans to analyze every single purchase for people.. they're looking for suspicious activity overtime 

[DreamStage]

If those measurements are required to fight money laundering then why not accept it?
I also feel more safe (some how) if they want to play by the rules, as that means that it will be more stable for them to make their clients to withdraw their funds without any government issues.
As well for them, if they need these sort of "approvals and agreements" for them to keep running without legal issues then we should consider is ok to have them.

[Slow death]

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?

in the crypto world this can be good or bad, it will depend on the exchange or service that the person will be using. for example:

imagine if someday a shady exchange like yobit start asking your customers to make KYC, would you make KYC on yobit? I would not do. Why would not I do KYC on yobit? because I do not know who the yobit owner is, how am I going to hand over my documents to a stranger?

[pixie85]

If those measurements are required to fight money laundering then why not accept it?
I also feel more safe (some how) if they want to play by the rules, as that means that it will be more stable for them to make their clients to withdraw their funds without any government issues.
As well for them, if they need these sort of "approvals and agreements" for them to keep running without legal issues then we should consider is ok to have them.

Why would you care about someone "laundering money". Their illegal activity shouldn't concern you unless you are some government worker or the police.
I really don't care if someone wants to move money around without telling their government spies about it. If your government bans bitcoin you could find yourself loundering money too.

[r1a2y3m4]

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 spelling of regulation was regualtion. I hope you fix this minimal error. To avoid these Fraudulent activities and to support the Anti Money Laundering we must regulate exchanges and especially bitcoin. It's a good move to regulate cryptocurrency. It makes it safer and not connected to some kind of bad activities.

[ccryptopark]

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 spelling of regulation was regualtion. I hope you fix this minimal error. To avoid these Fraudulent activities and to support the Anti Money Laundering we must regulate exchanges and especially bitcoin. It's a good move to regulate cryptocurrency. It makes it safer and not connected to some kind of bad activities.

I agree with you about regulation. There has to be some what of regulation to make governments to keep people, investors and governments safe.