Binance suggests deposit insurance and KYC processes in cryptocurrency trading

The exchange platform cryptocurrencies, Binance, published the fundamental rights that, from his perspective, should protect users; however, in them it suggests knowledge of the client (KYC) processes and having a deposit insurance against the risk in said instruments.

A few days ago, the platform created by Changpeng Zhao, published the document that integrates the 10 fundamental rights of users of the cryptocurrencies, in order to draw a regulatory path for the protection and security of individuals who move resources through these assets.

“Amid recent market rises, the arrival of new investors and the consolidation of the crypto industry, Binance is working with regulators and policy makers to develop global regulatory frameworks that achieve the common goal. to protect users, while allowing the continuity of innovation in a responsible manner, which guarantees a healthy advance of the industry, ”the platform said in a statement.

Binance It is present in 180 countries around the world, which gives it a global perspective on how they try to regulate these instruments at a global level.

“Regulation and innovation are not mutually exclusive. We want to do our best as an industry to work hand in hand with world leaders and regulators to identify a regulatory policy that is effective and, more importantly, that protects users. and drive innovation.

“At Binance, we look forward to working closely with regulators to help them increase their understanding of the industry and the possibilities it offers,” said CZ (Changpeng Zhao), CEO of Binance.

According to the platform, these should be the 10 rights of cryptocurrency users:

1. Every human being should have access to financial tools, such as cryptocurrencies, that allow greater economic independence.
2. Industry participants have a responsibility to work with regulators and legislators to shape new standards for crypto assets. Smart regulation encourages innovation and helps keep users safe.
3. Responsible crypto platforms have an obligation to protect users from bad actors and implement know-your-customer processes to prevent financial crime.
4. Privacy is a human right, and personally identifiable information (PII) data must be subject to strict levels of protection.
5. Crypto users have the right to access exchanges that keep their funds safe, in safe custody with comprehensive deposit insurance.
6. Healthy markets must maintain a strong level of liquidity to ensure a stable and frictionless trading environment.
7. Regulation and innovation are not mutually exclusive. Cryptocurrency users deserve secure access to emerging technologies and practices, including NFTs, stablecoins, staking, yield cultivation, and more.
8. Closing the knowledge gap is essential when it comes to crypto. Users have the right to obtain accurate information about crypto assets, without fear of being the victims of unfair or misleading advertising.
9. Markets offering derivative instruments must be subject to appropriate regulations. This ensures that all users meet the eligibility requirements and that their transactions are settled fairly.
10. Crypto regulation is inevitable. Users have the right to share their voice on how the industry should evolve with the blockchain platform of their choice.

Currently the cryptocurrency market it has a value of 2.4 trillion dollars.

Among the supporters of cryptocurrencies, there are positions that indicate that, as they are decentralized tools, they should not have controls like those with traditional financial institutions, which is why Binance’s statement has caused a stir among the crypto world.

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