Cryptocurrency giants are competing to participate in the formulation of regulatory rules, and Binance has proposed 10 basic rights for crypto users
"Just like the seatbelt in a car, a more regulated encryption market provides greater protection for everyday users."Author: Richard Lee, Chain Catcher
Recently, cryptocurrency exchange giant Binance launched a new website under the name "your crypto rights," related to investor protection, and published an article titled "10 Fundamental Rights for Crypto Users" on the site today. This move by Binance marks its entry into the ranks of other industry giants like Coinbase and A16z, actively participating in the formulation of crypto regulatory rules.
In a press release, Binance stated that it hopes these 10 provisions can provide guidance for discussions on crypto regulation and the establishment of a global regulatory framework for the crypto market.
The "rights" document takes a stance on investor protection, proposing rules that cover KYC (Know Your Customer), user privacy, custody security, market liquidity, and user rights to information.
Image source: https://yourcryptorights.com/
In the tenth provision, Binance stated that "crypto regulation is inevitable." It also mentioned that "now is the time for industry leaders, regulators, policymakers, and users to come together to help shape the future of global finance."
Since May of this year, Binance has faced investigations or warnings from major regulatory agencies in multiple countries and has suspended fiat-crypto trading operations in countries like South Korea and Singapore. On August 3, Binance CEO Changpeng Zhao tweeted that "Binance will shift from passive compliance to proactive compliance."
After actively hiring former employees from regulatory agencies like the IRS and Europol to strengthen the company's compliance operations, this statement marks Binance's first proactive proposal regarding crypto regulatory rules, moving away from its previous passive stance.
Last month, under pressure from U.S. regulators on the crypto industry, several major U.S. crypto firms, including Coinbase and A16z, submitted regulatory framework proposals to the authorities. Coinbase's suggestions include establishing a special regulatory body for digital assets and regulating digital assets under specific industry frameworks. A16z's proposal includes exempting DAOs (Decentralized Autonomous Organizations) from investment laws and regulations and providing favorable tax treatment for DAOs.
Currently, these industry proposals have not received a positive response from regulatory authorities.
In August of this year, SEC Chairman Gary Gensler stated at the Aspen Security Forum that investor protection and ensuring the stability of financial markets are the two main focuses of crypto regulation.
Recently, an SEC commissioner wrote about DeFi from the SEC's perspective, stating that the current DeFi industry "does not provide the detailed information necessary for investors to assess the risks and severity," placing retail investors at a significant disadvantage in terms of their rights to information compared to professional investors.
Changpeng Zhao retweeted information about the aforementioned "rights" document, stating that this is Binance's way of "welcoming the next billion crypto users."
Here are the specific contents of the 10 fundamental rights proposed by Binance:
- Everyone should be able to use financial tools, such as cryptocurrencies, to achieve greater economic independence.
- Industry participants have a responsibility to collaborate with regulators and policymakers to establish new standards for crypto assets. Smart regulation encourages innovation and helps ensure user safety.
- Responsible crypto platforms have an obligation to protect users from bad actors and implement Know Your Customer (KYC) processes to prevent financial crime.
- Privacy is a human right, and personally identifiable information (PII) data should be strictly protected.
- Crypto users have the right to access exchanges to ensure the safety of their funds and secure custody through comprehensive deposit insurance.
- A healthy market should maintain robust liquidity levels to ensure a stable and frictionless trading environment.
- Regulation and innovation are not mutually exclusive. Crypto users should be able to safely use emerging technologies and practices, including NFTs, stablecoins, collateral, yield farming, etc.
- Bridging the knowledge gap in crypto is crucial. Users have the right to access accurate information about crypto assets without fear of becoming victims of unfair or deceptive advertising.
- Markets offering derivative instruments should comply with appropriate regulations. This ensures that all users meet eligibility requirements and that their trades are settled fairly.
- Crypto regulation is inevitable. Users have the right to express their opinions on how the industry should evolve through their chosen blockchain platforms.
