Saturday, December 4

Is demanding personal information on bitcoin exchanges a right? Binance thinks so

Key facts:
  • Of the 10 cryptocurrency rights Binance wants, one would prevent privacy with KYC.

  • Binance wants to contribute to the global regulation of bitcoin and other cryptocurrencies.

Binance is seeking to establish a global regulatory framework on bitcoin and cryptocurrencies in general so that the industry continues to grow in an egalitarian, responsible and organized way in the world. For this reason, it published a list that indicates the 10 rights that users should have, including in terms of KYC.

It is release, which the company issued on November 16, responds to the current context that the industry is experiencing. As reported by CriptoNoticias, organizations from different countries are debating and determining how to regulate the use of cryptocurrencies such as bitcoin.

Some of these are the United States, Argentina, Mexico, Panama and GAFI, one of the strongest regulatory moves towards bitcoin that has aroused controversy in places like Venezuela, Spain, among others.

In this situation, Binance hopes that its recommendations will be taken into account by governmental and legislative authorities. Of each country. Considering its weight in the industry as one of the largest platforms in the bitcoin trading market, your opinion could contribute to the regulatory future of cryptocurrencies.

While several ecosystem enthusiasts are against assets being regulated by the government, Binance considers that regulation of cryptocurrencies is inevitable. The growth of the industry makes states want to control it, so Changpeng Zhao, the founder and director of the company, wants to get involved in this process.

Binance believes that KYC processes must be implemented

One of the ten rights that every cryptocurrency user should have, according to Binance, could put the ideals of the bitcoin community at stake. It is the third, which stipulates that, in order to prevent financial crimes, cryptocurrency platforms should request personal information of the users.

This It would mean that people can no longer keep their movements of bitcoin and other cryptocurrencies 100% private. Under the KYC process – know your customer – that Binance wants to be applied globally, platforms and regulators could have access to user data.

In this way, could review user transactions to monitor the legality of their operations, as it works in banks. However, this policy would go against the cryptopunk ideology that gave rise to Bitcoin, which prevails the privacy of the community when operating cryptocurrencies.

The striking thing is that the fourth right that Binance recommends establishing is contradicted by the third. Interestingly, there it states that privacy is a human right that must be protected. This is said right after recommending that cryptocurrency users fill out forms with personal information using KYC processes.

Changpeng Zhao, the founder and director of Binance, wants to contribute to the regulatory framework for bitcoin and cryptocurrencies around the world. Source: @amoarestar /

Considering this, it can be understood that the privacy that Binance wants cryptocurrency users to have would be nuanced. That is, by providing personal data to demonstrate that a cryptocurrency transaction does not come from criminal activity, users could not have total privacy.

10 rights cryptocurrency users should have, according to Binance

Then you can see the ten rights proposals that Binance recommends that regulators consider. These postulates suggest that exchanges – cryptocurrency exchange platforms – can collaborate with the relevant government authorities to regulate the ecosystem. These are:

  • I. Every human being should have access to financial tools, such as cryptocurrencies, that allow greater economic independence.
  • II. Industry participants have a responsibility to work with regulators and legislators to shape new standards for crypto assets. Smart regulation encourages innovation and helps keep users safe.
  • III. Responsible cryptocurrency platforms have an obligation to protect users from bad actors and implement “Know Your Customer (KYC)” processes to prevent financial crime.
  • IV. Privacy is a human right, and personally identifiable information (PII) data must be subject to strict levels of protection.
  • V. Cryptocurrency users have the right to access exchanges that keep their funds safe, in safe custody with comprehensive deposit insurance.
  • SAW. Healthy markets must maintain a strong level of liquidity to ensure a stable and frictionless trading environment.
  • VII. Regulation and innovation are not mutually exclusive. Cryptocurrency users deserve secure access to emerging technologies and practices, including NFTs, stablecoins, staking, yield cultivation, and more.
  • VIII. Closing the knowledge gap is essential when it comes to crypto. Users have the right to obtain accurate information about crypto assets, without fear of being victims of unfair or misleading advertising.
  • IX. Markets offering derivative instruments must be subject to appropriate regulations. This ensures that all users meet the eligibility requirements and that their transactions are settled fairly.
  • X. Regulation of cryptocurrencies is inevitable. Users have the right to share their voice on how the industry should evolve with the blockchain of their choice.

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