Binance crypto ad: Appeasing regulators or advocating future?

Highlights

• Binance published its first-ever ad in leading publications such as the Financial Times, Washington Post, and the New York Times newspaper with the headline 'Crypto is Evil'.
• Terming regulations as 'seat belts in a car', Binance claimed that regulations would bring protections for everyday users.
• Binance stressed crypto users should have access to emerging technologies like NFTs, stablecoins etc.

The crypto world is changing every day. A recent advertisement by the world's leading exchange, Binance, created some flutter in the market sending out a message or two for the regulators. 'Crypto belongs to everyone'. 'Crypto regulation is inevitable', these two statements are from Binance’s first-ever ad titled "Crypto Is Evil" that appeared in the leading publications across the world, such as Financial Times, Washington Post and The New York Times. 

Binance crypto ad: Appeasing regulators or advocating future?

The ad highlighted a thing or two. One it established Binance’s acceptance that crypto regulations will be the way to go in future. Secondly, it seems Binance is finally bowing down to the regulators will, of the making crypto market a more fundamentally secure market, to ensure that investors don't lose their money because of frauds, scams or hackers.

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Indirectly, it did send out a message to the regulators that it's a 'fundamental right' of any investor to choose where they want to park the money and how an exchange decides to operate in its functioning. 

What Binance said? 

In a carefully worded advertisement, the leading exchange pushed for innovation in the face of fast-arriving regulation. Terming regulations as 'seat belts in a car', Binance claimed that regulations would bring protections for everyday users. In 10 detailed points, the leading exchange claimed that it's a fundamental right of every investor to have complete control of financial tools such as cryptos for greater economic independence. 

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Besides, it also calls for a greater need to bridge the knowledge gap on cryptos, and the users have the right to get accurate information on the crypto assets. Stating that regulation and innovation are not mutually exclusive, Binance stressed crypto users should have access to emerging technologies like NFTs, stablecoins etc. and ensure that as an investor, it forms as a part of their fundamental right. 

Image credit: Kalkine Media

Regulations all over the world

Calls for crypto regulations have been gaining voices ever since various cases of crypto frauds have come out in the open. Many regulators worldwide have come down hard on Binance for operating in various countries without proper authorisation in their jurisdictions. Binance has been barred or asked to limit its function in countries like the UK, Netherlands, South Africa, Hong Kong, Malaysia, Thailand, Lithuania, Italy, Singapore, and Canada. 

The Commodity Futures Trading Commission (CFTC) too are investigating Binance for possible market manipulation and insider trading. Prior to that, Binance had already faced a probe from the US Department of Justice and the Internal Revenue Service, wherein the exchange was investigated on tax and money laundering claims.

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This ad does seem like a step ensuring that Binance remains in the good books of regulators of various countries and ensures that they can operate seamlessly. Besides, with US President Joe Biden has made the US $1.2 trillion infrastructure bill into law, which makes tax reporting mandatory in the US. It does seem to be taking a proactive step to ensure that Binance's operations as exchange are as per the legal norms. With regulations being the future, it could well be Binance's way of recognising that it's better to go with the tide than against it. 

Other messages 

Another interesting factor in the ad was the way it named other exchanges like FTX, Coinbase, Gemini, Kraken, Crypto.com and urged them to share their views on Binance's ‘10 Fundamental Rights for Crypto Users’. Although it seems to be a harmless way of asking the question from other leading exchanges, it appears to be poking them for their view on the same. 

Another interesting line from the ad was 'There's a world beyond Bitcoin and Dogecoin', indicating that Binance also wants the market participants to be more aware of Binance operated coins such as BNB.

As far as its market performance is concerned, Binance coin isn't having a great day on Wednesday. According to CoinMarketCap, the BNB is trading at US$565.09 with a 24-hour trading volume of US US$3,292,023,404. BNB is currently down by 8.46% in the last 24 hours, with a live market cap of US$94,258,421,146.

Conclusion

Well, it seems like Binance has sounded the bugle for other exchanges to join the rally in recognizing that it's better to join the crowd rather than going against it. The recognition should also keep Binance in the good books of regulators with the indirect message that they are open to regulations. 

Accepting that regulations are now the way forward should also give Binance some leeway after months of being under the scanner. Whether regulations would do good or bad to the crypto market is a debate for another time. For now, the leading exchange can breathe easy that it has sent a signal to regulators that it's open, and now the ball is in the court of other exchanges and industry leaders to debate how and why regulations could be beneficial.