Binance, the global blockchain ecosystem powering the largest digital asset exchange in the world, has joined an American crypto lobbying group amid rising criticism and looming money-laundering charges.
The Collapse of FTX
The crypto industry is experiencing a very interesting, even turbulent, end to the year. The nascent crypto market is still speculating about what and who will be collateral victims of the collapse of crypto exchange FTX and its sister company, Alameda Research.
BlockFi and Genesis, two crypto lenders, are among the first casualties. However, according to industry sources, the list is expected to expand. Regulators are still attempting to put everything together.
Binance is also facing criticism
Binance also played a significant role in the demise of FTX when CZ raised concerns about the financial stability of Bankman-Fried’s Alameda Research and FTX. CZ announced that he would sell the exchange’s FTT holdings, which led to a liquidity crisis. Then he said that Binance had agreed to a non-binding letter of intent to buy FTX in order to aid customers, but that it had backed out the next day after realising the severity of FTX’s problems.
Days later, the crypto market as a whole, including multiple businesses with exposure to the FTX, was destroyed by FTX’s bankruptcy filing.
The beginning of the demise of Binance’s competitor was signalled by a tweet from CZ, but in the upcoming weeks, CZ may potentially get into a lot of problems.
Binance, CZ may face money-laundering charges
U.S. prosecutors are considering filing money-laundering charges against Binance cryptocurrency exchange and its executives, including CEO Changpeng Zhao, Reuters reported.
According to persons familiar with the matter, some of the at least six federal prosecutors working on the case feel that the evidence they have accumulated supports taking strong legal action against the exchange and charging individual executives, including founder CZ.
Binance joins the Executive Committee of the Chamber of Digital Commerce
Amid all the criticism and charges, Binance has joined the Executive Committee of the Chamber of Digital Commerce, and aims to advance the blockchain ecosystem alongside other business stakeholders.
“The Chamber’s Executive Committee sets the organization’s priorities and strategy. As the world’s first and largest trade association representing the blockchain industry, the Chamber’s mission is to promote the acceptance and use of digital assets and blockchain-based technologies,” Binance said in a statement.
“Through education, advocacy, and close cooperation with policymakers, regulatory agencies, and the industry, the Chamber is working to establish a pro-growth legal and regulatory environment that fosters innovation, job creation, and investment.”
Binance VP of Public Affairs Joanne Kubba, said: “As an organization at the crux of the industry’s rapid growth and complex regulatory environment, working hand in glove with policymakers, regulatory bodies and industry groups like the Chamber is imperative for Binance.”
“Such work is fundamental to our shared mission of fostering the sustainable development of sensible regulations for cryptocurrency and blockchain, which ultimately ensures protections for users,” Joanne Kubba added.
Binance.US, joined the Chamber last year. Other prominent members of the Chamber include some of the big names of the financial industry like Citi, Visa, MasterCard, State Street, and Fidelity along with the major crypto industry players such as Dapper Labs, Ripple, and Circle.
Blain Rethmeier, VP of Public Affairs, Chamber of Digital Commerce, pointed out that blockchain technology is the future of finance.
“Our members represent the leading organizations that are committed to building the necessary infrastructure to enable a more sound and inclusive financial system. Binance has established itself as a leader in this emerging ecosystem and we are thrilled to welcome them and their contributions to our Executive Committee,” Blain said.
“The Chamber has established itself as a leading voice in blockchain technology policy. We are looking forward to working with the Chamber and finding solutions together for the long term as we usher in Web3 and a new era of the global economy,” said Kubba.
In order to inform, advocate for, and present solutions for some of the most critical challenges affecting the blockchain and crypto sector, Binance will engage closely with the Chamber of Digital Commerce, its employees, and members.
To aid in the creation of rational regulations that benefit society and users, Binance will take part in research, roundtables, working groups, and conversations with regulators and lawmakers.
