Binance Venus benefits of Facebook Libra mistakes

Malta-based Crypto exchange Binance says it’ll handle regulators better having learned from Facebook Libra mistakes. Venus will focus on developing partnerships outside of the Western countries.

The article was updated on 12 November, 2019 by Amicus.

30 August, 2019 | AtoZ MarketsOne of the world’s largest cryptocurrency exchanges is Binance. It said that it had learned a valuable lesson from the regulatory issues that have plagued Facebook Libra coin. And it 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 would engage with regulators from day one. They prepare to roll out its Venus stablecoin project.

Binance draws inspiration from the FaceBook Libra mistakes

Facebook announced its Libra stablecoin project back in June. It has faced harsh 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 it 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 would roughly align with the Chinese infrastructure initiative. That is to build up its infrastructure.

Meanwhile, China is planning to launch its digital coin that would eventually replace fiat currency in circulation and give Beijing even more control of its financial system. The launch date for this is still unconfirmed. But, the country’s central bank, the People’s Bank of China (PBOC) has already shut down domestic crypto exchanges.

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