After being caught in the regulatory whirlpool, Binance CEO Zhao Changpeng wrote an article revealing its compliance plans and measures

Since May 13, when Binance was investigated by the U.S. Department of Justice and the Internal Revenue Service, it has been consecutively investigated or warned by regulatory agencies in six countries, including Japan, the UK, and Thailand. Additionally, several financial institutions have restricted its payment services, plunging it into a global regulatory whirlpool.

In response to this regulatory storm, Binance CEO Changpeng Zhao published a lengthy article on the official blog today, stating that clear regulations are crucial for sustained growth, while also disclosing Binance's upcoming compliance plans and measures.

Zhao stated that so far this year, Binance has completed 5,600 investigation requests, an increase of 100% compared to last year. Furthermore, Binance's future compliance plans will focus on expanding the compliance team, establishing more compliance partnerships, and localizing operations.

Regarding the team, Zhao mentioned plans to double the size of the international compliance team by the end of the year and to equip it with qualified and experienced advisors for support. It is reported that since last year, the size of Binance's international compliance team and advisory committee has expanded fivefold.

At the same time, Binance disclosed several high-level personnel appointments within its compliance teams, including former Financial Action Task Force (FATF) Executive Secretary Rick McDonell and former head of the Canadian delegation to the FATF, Josée Nadeau, as compliance and regulatory advisors. Max Baucus, the U.S. Ambassador to China, is also providing compliance guidance.

Today, Binance also announced the hiring of former eToro compliance chief Jonathan Farnell as Chief Compliance Officer, while Binance US announced the hiring of former California Department of Financial Protection and Innovation (DFPI) Commissioner Manuel Alvarez as Chief Executive Officer, responsible for compliance and legal matters.

In terms of regulatory partnerships, Zhao stated that Binance has implemented new controls and regulatory technologies with organizations such as blockchain security intelligence company CipherTrace, and Binance has passed multiple external anti-money laundering (AML) audits. Zhao revealed that Binance recently collaborated with international crime-fighting organizations such as the United Nations Office on Drugs and Crime (UNODC) and INTERPOL to hold working groups and seminars, indicating potential further regulatory cooperation in the future.

Regarding localized operations, Zhao expressed a commitment to comply with appropriate local regulations wherever it operates. In this regard, Zhao did not disclose specific points, only stating that the goal is "to continue working with regulators to address their concerns."

In fact, the issue of Binance's local registration operations is precisely the focus of multiple regulatory agencies in this whirlpool. At the end of June, the Financial Services Agency of Japan and the Financial Conduct Authority of the UK issued warnings regarding Binance's lack of any form of registration or license locally. On July 2, the Thai SEC filed criminal charges against Binance for allegedly operating a digital asset business without a license under the country's latest regulations, with criminal penalties involving 2-5 years of imprisonment and fines.

"We know we are at a critical point for the broader industry," Zhao stated, adding that the aforementioned measures are only initial steps.

Currently, regulatory scrutiny of Binance by various countries may still be ongoing. On July 5, the South Korean Financial Services Commission (FSC) announced plans to regulate overseas cryptocurrency exchanges, including Binance. According to South Korea's recently revised Act on Reporting and Using Specific Financial Transaction Information, overseas cryptocurrency exchanges must register with the government by September 24, or they will be prohibited from operating in South Korea starting September 25.

The FSC's Financial Intelligence Unit (FIU) believes that Binance is operating in South Korea, although the specific details of its business model need to undergo legal review. "Even if the exchange is headquartered overseas, if they are targeting Korean users, they are obligated to report to the FIU," an official from the department stated.

A member of the ruling Democratic Party of Korea remarked, "If Binance fails to meet the standards of the Act on Reporting and Using Specific Financial Transaction Information by this September, then financial authorities should take action to shut it down."