Compliance Wednesday: Latest Regulatory Updates in Crypto
Hey everyone,
Welcome back to Compliant Wednesday with the latest batch of policy updates from our around the world:
- 🇺🇸 Binance boosts compliance workforce
- 🇺🇸 Experts urge collaboration with regulators
- 🇫🇷 Telegram CEO arrest sparks crypto concerns
- 🇳🇿 New Zealand implements OECD crypto reporting
- 🇳🇬 Nigeria pushes for compliance-focused regulation
🇺🇸 Binance boosts compliance workforce
Binance, the world’s largest crypto exchange, has increased its workforce by 1,000 this year, with 20% of new hires focusing on compliance. The company plans to further expand its compliance team to 700 by the end of 2024. This move comes as Binance’s spending on regulatory requirements has surpassed $200 million annually. The CEO, Richard Teng, who has a regulatory background, aims to invest in creating a more secure ecosystem for the company. Additionally, Binance has been collaborating with law enforcement agencies and has reported success in reclaiming stolen funds.
Our take:
Binance’s emphasis on compliance reflects our values of building a secure crypto ecosystem. Investing in regulation and collaboration shows how important it is to create trustworthy, resilient frameworks for the industry’s growth.
Read more here.
🇺🇸 Experts urge collaboration with regulators
Compliance experts to work with regulators in shaping effective crypto laws in the United States, according to Blake Benthall, founder of Silk Road 2.0. He highlights the importance of crypto compliance firms in educating regulators and preventing overly strict rules that could stifle the industry’s growth. Coinbase and Binance are already working with regulators to set compliance standards and address challenges in the crypto space but further cultural and regulatory challenges remain.
Our take:
A balanced regulatory approach fosters a healthy environment for industry advancement. This also aligns with our mission to support innovation while ensuring compliance.
Read more here.
🇫🇷 Telegram CEO arrest sparks crypto concerns
Telegram CEO Pavel Durov’s recent arrest has sparked concerns in the crypto community about potential government crackdowns on decentralized technology. His arrest raises worries about the impact on the crypto industry, as Telegram is widely used as a communication platform for crypto projects. There are also concerns about Telegram’s encryption practices and the potential for increased surveillance and censorship. Additionally, the arrest has led to discussions about the need for resilient social networks to protect user data from centralized control.
Our take:
Durov’s arrest highlights the ongoing tension between government actions and the need to protect privacy. It’s a strong reminder of why we need resilient systems to safeguard user data.
Read more here.
🇳🇿 New Zealand implements OECD crypto reporting
New Zealand is implementing a new tax bill that includes a crypto reporting framework developed by the OECD. Crypto service providers in New Zealand will be required to collect and report information on users operating through their platforms to the Inland Revenue by specific deadlines. The information will be shared with tax authorities worldwide. Noncompliance with the new reporting measures can result in fines for both the service providers and users. The aim is to ensure proper taxation of profits derived from crypto trading and increase visibility over income or investment opportunities facilitated through large-scale intermediaries.
Our take:
New Zealand is setting an example by making crypto reporting transparent, which could help build trust and ensure fair taxation in the digital economy.
Read more here.
🇳🇬 Nigeria pushes for compliance-focused regulation
Local crypto stakeholders in Nigeria are advocating for a regulatory framework that focuses on compliance rather than penalization for the cryptocurrency industry. They argue that the current approach, which has led to legal battles and detentions, is counterproductive and could damage Nigeria’s reputation. They point to India’s resolution with Binance as a model to emulate, which involved penalties and constructive engagement to ensure compliance with regulations. Stakeholders believe that a more balanced and nuanced regulatory approach will foster an environment conducive to oversight and innovation while preserving investor trust.
Our take:
Nigeria’s push for a more supportive regulatory environment could help grow the crypto industry while ensuring that innovation isn’t stifled by unnecessary penalties. This is what we mean by positive regulation.
Read more here.
And that’s it! What do you think about this week’s news? Let us know in the comments!
For more Web3 compliance tips, rewarding quests, and info on our solutions — follow us on social media:
✅ Twitter — https://link.swisstronik.com/115
✅ Telegram — https://link.swisstronik.com/ahd
✅ Discord — https://link.swisstronik.com/hph
✅ Linkedin — https://link.swisstronik.com/q7j
✅ Github — https://link.swisstronik.com/wlb
