At the Consensus blockchain conference in Singapore last month, Binance founder Changpeng Zhao was mobbed off stage. The crowd was so excited that the organisers were tempted to call security. Zhao, who appeared wearing a black T-shirt with the Binance logo, was applauded by the crowd. Zhao’s speech was widely circulated, including a piece of commentary in the industry publication CoinDesk.
Over-the-counter yuan trade
One of the largest cryptocurrency exchanges in the world, Binance, is shutting down the OTC marketplace for Chinese yuan. The company, which is headquartered in Hong Kong, has many customers in China. On December 31st, it will cease servicing OTC Chinese yuan trades. This will restrict users’ access to the platform and will allow only those in mainland China to withdraw funds.
The announcement follows the company’s decision to withdraw from the Chinese market earlier this year and shut down yuan trading on its exchanges. Both Huobi and Binance have already blocked new registrations from mainland China. According to Binance, Chinese users will have to pay a 0.2% monthly fee once they reach a certain amount. After that, Chinese users will only be able to withdraw their balances through Chinese exchanges.
The move comes after Binance followed Huobi, which has suspended its Chinese yuan OTC marketplace and retired verified mainland China ID customers. This is just the latest in a series of response from cryptocurrency exchanges to Chinese regulators. Binance’s exchange token fell five percent after the news, and it was changing hands at $440 as of press time. While the announcement is likely to cause confusion among users, there’s no doubt that it will eventually become a popular cryptocurrency exchange in China.
Compliance with state’s virtual currency rules
Compliance with state’s virtual currency rules can be challenging, especially if you operate in several states. Several states have not yet passed legislation that would prohibit the use of virtual currencies, so the burden of ensuring compliance is often on the individual virtual currency holders. However, the Revised Uniform Unclaimed Property Act (RUUPA) offers order to numerous UP laws. It codifies the definition of cryptocurrency and helps state governments guide their policy and regulations.
The Hawaii Money Transmitter Act requires virtual currency businesses to maintain an aggregate market value of at least as much as the outstanding transmission obligations. This requirement has proven financially unworkable for virtual currency operators. As a result, Coinbase suspended operations in the state. Further, virtual currency businesses should be careful to avoid using the state’s monetary regulations. But in order to avoid potential problems, businesses should consider avoiding these rules and obtaining an exemption from them.
States like Washington are stepping up their regulation of virtual currencies. As of July 2017, Senate Bill 5031 in Washington placed virtual currency exchanges under the same money transmitter rules as traditional money transmitters. Because these virtual currencies are not yet considered legal tender in the U.S., state regulators have not published any guidance on how to regulate them. Even if the state does issue regulations, companies that operate on its virtual currency exchange must be aware of the rules and comply with them.
Zhao Zhao’s speech at Consensus blockchain forum
If you’re looking for a way to make your money on cryptocurrency, you should watch Binance CEO, Xiaoming Zhao’s speech at the Consensus blockchain conference. Zhao has made numerous appearances with regulators, both inside and outside of the financial system, and is a frequent speaker at blockchain conferences. This week, Zhao will address the audience at Consensus, a blockchain forum, to discuss his latest venture, Binance.
Despite being a charismatic entrepreneur, Zhao denies being an extremist and says his appeal comes from his love for freedom. Western media outlets are quick to tout his emergence as the founder of a cryptocurrency exchange, as Binance has gone from a white paper to a $15 million ICO and billions of dollars in daily trading. But Zhao’s words reveal his deep commitment to the freedom of speech that makes his work so compelling.
This is not to say that Binance is a good example of decentralized exchanges. In fact, the company has been very successful in many countries and relying on its technology could lead to others building a fake version of the popular exchange. Zhao is also looking to venture into less-favoured areas of the industry. In the coming year, he plans to reboot the Binance Launchpad, an exchange that lists token sales.