Binance, the world’s leading blockchain ecosystem, has called on national lawmakers around the world to work with their constituents and crypto industry leaders on regulating the crypto space.
The crypto exchange announced this while launching its 10 Fundamental Rights for Crypto Users that can serve as a guiding hand in regulatory discussions and the development of global frameworks for crypto markets.
Recall that following a directive prohibiting Nigerian banks from facilitating transactions involving Bitcoin and other cryptos, Nigeria’s central bank recently commenced a clampdown on bank accounts suspected of dealing in cryptos.
This development has since led to a 43% drop in weekly peer-to-peer (P2P) crypto transactions out of the country. Nigeria is responsible for nearly 50% of all crypto activity out of Sub-Saharan Africa.
Also, the Islamic Council of Indonesia recently ruled that Muslims are forbidden from transacting in cryptocurrencies. This is due to the speculative nature of the assets which makes it similar to gambling and sports betting. Indonesia has the largest Muslim population in the world.
Just like these two countries, several other nations around the world have restrictions in place against cryptocurrencies. However, Binance says that it’s time for industry leaders, regulators, policymakers and users to help shape the future of global finance together.
We believe it should be up to each nation’s policymakers and their constituents to decide who should have oversight over the industry. Crypto belongs to everyone. So let’s make it ready for everyone.
Binance 10 fundamental rights for crypto users
Announcing the 10 fundamental rights for crypto users, Binance CEO, Changpeng Zhao (CZ) says the move is in line with the company’s priority to the everyday user; from ensuring their security to guaranteeing their overall experience as part of a greater community.
“That’s what crypto is all about, and it’s important that we don’t lose sight of that as an industry. With these 10 basic rights, we hope to provide a voice to those who have traditionally been muted by high finance,” he said.
The exchange believes the 10 Fundamental Rights for Crypto Users will serve as a guiding point to launch more productive conversations with the larger industry, including other exchanges, blockchain innovators, policymakers and world leaders.
The provisions of the fundamental rights include:
- Every human being should have access to financial tools, like crypto, that allow for greater economic independence.
- Industry participants have the responsibility to work with regulators and policymakers to shape new standards for crypto assets. smart regulation encourages innovation and helps keep users safe.
- Responsible crypto platforms have an obligation to protect users from bad actors and implement Know Your Customer (KYC) processes to prevent financial crimes.
- Privacy is a human right and, and personally identifiable information (PII) data should be subject to strict levels of protection.
- Crypto investors have the right to access exchanges that keep their funds secure in safe custody with comprehensive deposit insurance.
- Healthy markets should maintain a robust level of liquidity to ensure a stable and frictionless trading environment.
- Regulation and innovation are not mutually exclusive. Crypto investors deserve safe access to emerging technologies and practices including NFTs, stablecoins, staking, yield-farming, and more.
- Closing the knowledge gap is essential when it comes to crypto. Users have the right to accurate information on crypto assets, without fear of falling victim to unfair or deceptive advertising.
- Marketplaces that offer derivative instruments should be subject to the appropriate regulations. This ensures all users meet eligibility requirements and that their transactions are fairly settled.
- Crypto regulation is inevitable. Users have the right to share their voice on how the industry should evolve with their blockchain platform of choice.
- The exchange says it is working with regulators and policymakers to develop global regulatory frameworks that achieve the mutual goal of protecting users, while allowing innovation to continue in a responsible manner, ensuring a healthy trajectory forward for the industry.
This is amid the recent market highs, an influx of new investors, and maturation of the crypto industry,
“Regulation and innovation are not mutually exclusive. We want to do everything possible as an industry to work with regulators and world leaders to identify what is going to be the effective regulatory policy that, most importantly, protects users and spurs innovation. At Binance, we look forward to working closely with regulators to help increase their knowledge on the industry and its possibilities,” said CZ.