Major crypto exchange Binance recently voiced concerns over the regulatory environment in the US, urging the country to adopt clearer rules like the ones in Europe. The exchange’s Chief Strategy Officer, Patrick Hillman, spoke at the Financial Times’ Crypto and Digital Assets Summit in London, stating that enforcement of crypto regulations in the US has been “very confusing” over the past six months.
According to Hillman, the US currently finds itself in a “weird place” when it comes to crypto regulations, making it difficult for Binance to operate in the country. To address the issue, Hillman posited that regulators should adopt a completely new direction, taking inspiration from Europe’s approach.
It’s worth noting that the European Union (EU) earlier this year passed the comprehensive Markets in Crypto Assets (MiCA) regulatory framework. The move garnered praise from various industry experts, including Binance CEO Changpeng Zhao. Zhao remarked that the framework signifies one of the world’s largest markets introducing tailored regulations for crypto to protect users and support innovation.
Despite the UK no longer being part of the EU and subject to the new MiCA rules, Binance’s Hillman shared that the company is eager to adhere to UK regulations. He stated that the exchange would do “everything we possibly can” to be regulated under UK law. The comments follow similar sentiments expressed by another major US-based exchange, Coinbase.
Coinbase’s CEO Brian Armstrong previously discussed the possibility of moving operations abroad to avoid regulatory uncertainty in the US. In an April 19 speech held in the UK, Armstrong revealed that he would have opted for the London Stock Exchange over New York if given the choice to relist his company. He argued that regulations in the UK are more straightforward since the country has a single regulator responsible for both securities and commodities.
“You don’t have this unfortunate thing happening where the CFTC and the SEC are having a turf battle,” Armstrong stated. Considering the ever-evolving nature of the crypto landscape, a streamlined approach to regulation could prove essential for fostering innovation and growth in the sector. Ultimately, it remains to be seen if the US will adapt its regulatory environment to better suit the needs of crypto businesses and investors.
Source: Cryptonews
