2022 wasn’t the best year for all cryptocurrencies across the board. However, Binance hit each of the targets regarding compliance, transparency, and user protection. This article will examine some of Binance’s major 2022 hits in the mentioned areas.
Key Points
- Compliance: 2022 saw Binance scale up its regulatory compliance, among other initiatives, to protect its users.
- Licenses: Binance, in collaboration with various regulators worldwide, worked around the clock in 2022 to secure permits and registrations in 14 jurisdictions.
- Security: In 2022, Binance became the first crypto exchange platform to join the National Cyber-Forensics and Training Alliance (NCFTA). It accomplished this by increasing the firm’s security and compliance headcount by more than 500%.
- Proof-of-reserves: In 2022, Binance began a proof-of-reserves system known as PoR. It aims to prove that user funds on Binance is held on a 1:1 ratio, plus additional reserves.
The Largest Crypto Exchange by Volume
2022 has been a year’s rollercoaster inside and outside the crypto market. It was a special year for Binance as the firm celebrated its 5th anniversary in July. Since its launch five years ago, Binance’s primary mission has been to promote money freedom for every individual around the globe.
In its path to achieving this monumental goal, Binance has always placed the interests and needs of its users first. With this approach, users worldwide have received Binance quite well, enabling the firm to become one of the largest global crypto exchange companies.
A lot has changed since Binance’s launch; however, the company’s goals and missions have changed. The firm is still pushing for “money freedom” for everyone globally. As if not enough, Binance is also still pursuing its goal of mass adoption.
For Binance to continue pushing these agendas forward, it must establish trust between Binance and its users. Binance can only achieve this trust only through the application of transparent and genuine methods.
These methods include:
- Implementation of robust security measures and user identification systems.
- Collaborating with law enforcement agencies to combat financial crimes.
- Remaining transparent and responsive to users.
- Abiding by the financial laws set by the government.
- Playing a role in developing new crypto alongside their policies and regulations.
In simple terms, Binance plays a huge role in regulatory compliance in the crypto market. Some traditional cryptocurrency holders might argue that increased compliance conflicts with the core ethos of crypto. However, increased compliance is for everyone’s benefit.
It is also important to note that the Binance CEO, Changpeng Zhao (CZ), has been actively fighting for compliance in the crypto market. According to CZ, good regulation will be good for crypto, and the opposite is also true. He insists that having reasonable rules that protect users while promoting innovation will catapult the industry to great heights.
What to look back at…
Law Enforcement Partnership
Binance is fully aware that to protect its users, collaborating with law enforcement agencies is inevitable. For this reason, the firm has partnered with the NCFTA and boosted its security and compliance team significantly.
Consumer Security and Transparency
By the end of January 2022, Binance had set side assets valued at around $1 Billion in the SAFU program. The SAFU program is a special emergency Binance fund comprised of assets such as BNB, BTC, and BUSD. These assets are set aside to protect users in case of losses.
Other user protection programs, such as PoR discussed above, also significantly improved in 2022.
2023 Expectations
Compliance and Transparency are the foundation on which Binance was built. The firm believes that trust is essential to achieve long-term success. One way to ensure that the users trust the firm is by beefing up security.
To achieve this, Binance always has and will continue to work with law enforcement agencies to enforce maximum security across its eco-system.
Binance accomplished many things in 2022, and with the dawn of a new year, users worldwide are hoping for the same or more from the firm.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
