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Binance joins the pressure group as criticism of the exchange mounts



Binance has joined the Chamber of Digital Commerce, a lobbying group for the US cryptocurrency industry, according to a December 20 press release from the exchange. The move comes after Binance was criticized for being unregulated.

Binance Vice President of Public Affairs Joanne Kabba she expressed I hope the partnership will help create clear regulations for the cryptocurrency industry in the US, stating:

“As an organization at the heart of a rapidly growing industry and a complex regulatory environment, working closely with policymakers, regulators, and industry groups like the Chamber is essential for Binance. Such work is central to our shared mission to promote the sustainable development of sensible regulation of cryptocurrency and blockchain, which ensures Ultimately, protection for users.

According to its website, the Chamber of Digital Commerce advocates for a variety of public policies, including tax parity for digital assets, AML/KYC regulations for cryptocurrency exchanges, greater regulatory clarity for security tokens, and Central Bank Digital Currency (CBDC) search, among other things.

Through its Political Action Committee (PAC), the chamber has made contributions to three candidates for Congress in 2022: Patrick McHenry (R-NC), Blake Masters (AZ), and Ron Wyden (D-OR).

Related: The new House Financial Services Committee chair wants to delay crypto tax changes

The controversy around Binance

Since the collapse of FTX, Calls to regulate encryption increased, and Binance came under particular scrutiny for being a high-volume exchange with no clear geographic location or regulatory status.

At a congressional hearing on December 14th, Kevin O’Leary claimed this Binance caused FTX to crash It is an unregulated monopoly.

Binance CEO Changpeng Zhao answered O’Leary’s allegations were made in an interview with CNBC on December 15, calling them “a bunch of bullshit allegations”.

On December 12, Reuters released a report claiming that US Department of Justice officials were Deciding whether to charge Binance Executives with financial crimes. The executives have not been charged yet, but the report led to large flows Other stablecoins and cryptocurrencies from Binance.

In order to prove that it is trustworthy and solvent, Binance has issued an audited backup proof. However, proof of reserve has been criticized For not disclosing Binance’s corporate structure or internal controls.

Binance.US, a separate exchange with the same name as the global trading platform, was formerly join Chamber of Digital Commerce in 2020. Its competitor, FTX, was too Contributor to American Politicians. But this appears to be the first time that the international Binance organization is directly affiliated with a US lobby group.