Malta-based Crypto exchange Binance says it’ll handle regulators better having learned from Facebook Libra mistakes.
August 30, 2019 | AtoZ Markets – One of the world’s largest cryptocurrency exchanges, Binance said that it has learned a valuable lesson from the regulatory issues that have plagued Facebook Libra coin and will take a different approach when working on the launch of Venus.
In an interview with Bloomberg, He Yi, the lesser-known co-founder of Binance said that the company will engage with regulators from day one as they prepare to roll out its Venus stablecoin project. He also confirmed previous rumors that Venus will be focused on developing partnerships outside of the Western countries.
Binance draws inspiration from the FaceBook Libra mistakes
Since Facebook announced its Libra stablecoin project back in June, it has faced tough scrutiny from regulatory bodies, central banks, and politicians worldwide. As a result, Facebook said in a risk disclosure filed with the Securities and Exchange Commission (SEC) that Libra might never launch.
On the contrary, Binance says it will better handle regulators by focusing on compliance from the start. Yi said in the interview:
“If we want to launch Venus in a country, we’ll make sure it complies with the regulations.”
As AtoZMarkets reported last week, the Venus project will focus on developing localized stablecoins and digital assets pegged to fiat currencies across the world. She explained that Venus drew inspiration from Libra, but would take a more technical approach, giving priority to regulatory compliance.
Belt and Road version of Libra
Binace Venus project will be a bit different from Facebook’s Libra as it will be focused on partnering with governments and companies in non-Western countries. The co-founder referred to Venus as a “Belt and Road” version of Libra, referencing China in particular. Yi said that the geographic scope of Venus will roughly align with the Chinese infrastructure initiative to build up its infrastructure.
Meanwhile, China is planning to launch its own digital coin that would eventually replace fiat currency in circulation and give Beijing even more control of its financial system. Although the launch date for this is still unconfirmed, the country’s central bank, the People’s Bank of China (PBOC), has already shut down domestic crypto exchanges.
Think we missed something? Let us know in the comments section below.