Many cryptocurrency exchanges have had problems with financial regulators in different countries. Some of them have had to shut down or move their operations to other countries. Others have been forced to look for ways to deal with supervisors and improve compliance.
In 2021, cryptocurrency exchange Binance had numerous issues with regulators in different countries. As reported by CoinIdol, a world blockchain news outlet, it was charged and sanctioned by the Japanese Financial Services Agency (FSA) for allegedly conducting illegal business.
Later, the UK’s Financial Conduct Authority (FCA) banned Binance from operating in the United Kingdom on the grounds that it does not meet AML requirements and is not registered with the regulator. The US is the latest country to investigate the company’s compliance and operations.
To improve the situation, Binance hired a former criminal investigator Greg Monahan as a money laundering officer. They hoped that the investigator’s 30 years of experience would help them deal with compliance issues.
Seeking communication with Washington
Coinbase is the latest exchange to run into trouble with regulators. Earlier this month, the US Securities and Exchange Commission (SEC) threatened to sue Coinbase if the company pursued plans to launch Lend, a loan program that allows users to earn interest on lent funds. After the regulator sent a Wells Notice to Coinbase on September 1, 2021, it did not inform the exchange what exactly was the reason for such a threat.
In order to increase its productivity in the crypto industry and continue to operate in compliance with existing regulations, Coinbase is now looking for a Communications Manager, which has connections with the government to help establish decent communication with Washington.
The company is also interested in hiring employees to perform various duties, such as overseeing exchange’s media relations and strategic presence in key policy discussions, developing long-term and optimized vision to oversee reactive issue management and proactive relationship building with influencers and media platforms, analyzing policy, media and communicator commentary to provide meaningful memos and assessments to the exchange’s policy team, working with the exchange’s communications agency to create effective and transparent planning processes, researching, adopting and implementing data-driven methodologies to evaluate the impact and effectiveness of the cryptocurrency business.
The fact that cryptocurrency exchanges are seeking approval and avoiding scrutiny by regulators in the respective countries in which they operate means that this business is becoming more regulated and therefore more legitimate. In the long run, time will tell if new recruits will help these companies solve their compliance issues and improve their overall operations.