The exchange came under increasing pressure from critics after rival FTX collapsed.
According to a Dec. 20 press release from the exchange, Binance has joined the Chamber of Digital Commerce, a crypto industry lobby group in the United States. The move comes after Binance was criticized for allegedly being unregulated.
Joanne Kubba, Vice President of Public Affairs at Binance, expressed hope that the partnership would help lead to clear regulations for the crypto industry in the United States, saying:
“As an organization at the heart of the industry’s rapid growth and complex regulatory environment, collaborating with policymakers, regulators and industry groups like the Chamber of Commerce is essential for Binance. This work is fundamental to our shared mission of promoting the sustainable development of sane cryptocurrency and blockchain regulations that ultimately ensure user protection.
According to its website, the Chamber of Digital Commerce advocates for a variety of public policies, including tax parity for digital assets, anti-money laundering/know-your-customer regulations for crypto exchanges, greater regulatory clarity for security tokens, and central bank digital research. currencies.
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Through its Political Action Committee, the House of Representatives has made contributions to three candidates for Congress in 2022: Republican Rep. Patrick McHenry of North Carlina; Republican Senate candidate Blake Masters of Arizona; and Democratic Senator Ron Wyden of Oregon.
See Also: New House Financial Services Committee Chairman Wants to Delay Crypto Tax Changes
Binance controversy
Since the collapse of FTX, calls for crypto regulation have increased, and Binance has come under particular scrutiny for being a high-volume exchange with no clear geographic location or regulatory status.
During a December 14 congressional hearing, Kevin O’Leary claimed that Binance caused the collapse of FTX and is an unregulated monopoly.
Binance CEO Changpeng Zhao responded to O’Leary’s claims in a CNBC interview on Dec. 15, calling them “a bunch of nonsensical claims.”
On Dec. 12, Reuters published a report claiming US Department of Justice officials were deciding whether or not to indict Binance executives for financial crimes. The executives have not yet been charged, but the report has prompted large outflows of stablecoins and other cryptos from Binance.
To prove that it is trustworthy and creditworthy, Binance has published an audited proof of reserve. However, the reserve evidence has been criticized for failing to disclose Binance’s corporate structure or internal controls.
Binance.US, a separate exchange with the same name as the global trading platform, joined the Chamber of Digital Commerce in 2020. Their rival FTX has also contributed to US politicians. However, this appears to be the first time that the international organization Binance has directly affiliated with a US lobby group.
