As Criticism Of Binance grows, It Joins Lobbying Organization
Binance has joined the Chamber of Digital Commerce, which is a lobbying organization for the cryptocurrency market in the United States, according to a press release that was issued by the exchange on December 20.
After receiving feedback that it was allegedly functioning in an unregulated manner, Binance ultimately decided to make this choice.
Following the demise of the exchange's primary rival, FTX, the exchange has been the target of an increasing amount of criticism from its adversaries.
The Vice President of Public Relations for Binance, Joanne Kubba, has stated the expectation that the partnership would aid in leading to clearer legislation for the cryptocurrency industry in the United States.
Binance has come under particular scrutiny as a result of the fact that it is a high-volume exchange that does not have a defined geographical location or the legal status that it should have. This is because the failure of FTX has led to an uptick in demands for crypto regulation, and Binance has come under particular scrutiny as a result.
On December 14, Kevin O'Leary testified in front of a congressional committee and said that Binance is an unregulated monopoly that was responsible for the failure of FTX.
In order to show that it can be trusted and that it has adequate financial resources, Binance has prepared a proof-of-reserve that has been subjected to independent auditing.
On the other side, the proof-of-reserve has been criticized due to the fact that it does not expose the internal controls or the corporate structure of Binance.
In the year 2020, the cryptocurrency exchange known as Binance in the United States joined the ranks of members of the Chamber of Digital Commerce.
Both the global trading platform and a separate cryptocurrency exchange go by the name Binance. Binance was founded in 2017.
Its main rival, FTX, was also known to provide money to political candidates and campaigns in the United States.
On the other side, it seems that the international Binance organization has never before directly joined a lobbying group in the United States. This may be the first time that it does so.