Binance’s U.S. arm, Binance.US, has announced that it is leaving the Blockchain Association, a key industry lobbying organization. Moving forward, Binance.US will be setting up its own government affairs team in Washington D.C. to engage with issues on crypto regulation and compliance to the country’s financial policies.
This departure from the U.S. division of the industry’s largest crypto exchange by sheer volume will likely have a significant impact on crypto regulation, with the Blockchain Association being a key lobbying organization in the U.S.
“Binance.US made a major investment last year in the Blockchain Association. Our executives recently negotiated in good faith with Blockchain Association executives in an effort to grow Binance.US’ role within the group. But after multiple conversations we ultimately determined that our values, goals and standards were not fully aligned. The resources that we would have dedicated will now be reallocated to efforts consistent with Binance.US’ policy agenda in Washington and state capitals across the country,” a spokesperson from Binance.US explained.
Binance.US has been a member of the Blockchain Association since August 2020, causing a controversy in which Coinbase resigned shortly after Binance.US joined the association. At the time, Coinbase cited board decisions which seemed “at odds with the association’s mission,” implying that Binance.US’ affiliation with the group may have caused their own departure.
“We believe it’s time we had a clear voice with meaningful impact in the emerging policy debates around digital assets and cryptocurrencies in Washington,” Binance.US said.
With this decision, Binance.US will be building out its own lobbying operations that are aimed at actively engaging U.S. policymakers, promoting constructive dialogue on the matter of crypto regulation. In 2019, Binance was banned from operating in the U.S., resulting in the exchange deciding to open Binance.US as a way to comply with U.S. policies. The exchange has since attracted further legal scrutiny, with a recent probe from the CFTC (Commodity Futures Trading Commission) for its alleged involvement in illegal derivatives trading.
These withdrawals from the Blockchain Association may reflect discrepancies in the leadership behind the group, and the crypto space will need to evolve to gain better alignment and key compliance measures, especially for the regulation of digital assets and other blockchain-based securities.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/04/binance-us-secedes-from-the-blockchain-association