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Binance CEO Comments On Blocking Withdrawals To Wasabi wallets. Is Privacy Above Everything?

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The head of the Binance cryptocurrency exchange, Changpeng Zhao, published a post in which he commented on the blocking of withdrawals, which was announced the day before by one of the users of the Wasabi Wallet, a privacy-oriented Bitcoin wallet.

According to Changpeng Zhao, the comments of the community representatives on the Twitter post of the user who faced the problem, for the most part, indicate that many do not fully understand all the subtleties of the regulation of the cryptocurrency industry, including in terms of procedures such as KYC and AML, and how they apply to various types of exchanges.

Speaking about KYC and AML, the head of Binance recalls the existence of specialized analytical services with which both exchanges and regulators work.

Further, Changpeng Zhao lists various types of exchanges - regulated, that is, those that operate according to the laws of a particular jurisdiction, unregulated - those that do not have a specific jurisdiction and, as a result, are not subject to clear regulatory rules, and, finally, decentralized exchanges.

And since most regulators set AML standards above privacy, users have a choice to use regulated exchange, non-regulated exchange or DEX exchange.

If you are really serious about privacy, you should consider using a privacy coin, as the name suggests,” Changpeng Zhao emphasizes.

Regarding Binance directly, he noted that to date, we are no longer talking about just a company or one centralized exchange. The Binance brand is used by several regulated fiat-enabled exchanges, including Binance Singapore, Binance.US, Binance Jersey, etc. All of them operate independently of the global platform and are subject to regulatory rules in their respective jurisdictions. There is also a Binance DEX running on Binance Chain's own blockchain.

The story on this, however, is far from over. As the famous Bitcoin evangelist Max Hillebrand wrote earlier today, it is already known about the second case of blocking the withdrawal of funds on Wasabi Wallet.

However, he cites a copy of the letter in which Binance SG reports that, although it takes care of user privacy, “it does not tolerate transactions directly or indirectly related to gambling, p2p transactions, and especially darknet and mixers”.