Binance co-founder He Yi has confirmed that his exchange plans to engage with regulators to obtain regulatory buy-in, to avoid the type of regulatory pushback Facebook has received since announcing its Project Libra plans, Bloomberg reports. According to her, Binance plans to focus on compliance prior to launching in any country.
Unlike Libra, Venus will focus on partnering with governments and companies in non-Western countries, He said. In a special shout-out to China, she called Venus a “Belt and Road version of Libra,” saying its geographic scope would roughly align with Beijing’s sprawling infrastructure initiative.
The emphasis on regulatory buy-in is yet another sign of Binance’s efforts to improve its relationship with governments. The crypto platform, established in 2017, has at times played a game of regulatory whac-a-mole -- for example, it quit markets including Japan and China to avoid clashes with local financial watchdogs. But more recently Binance has set up regulatory-compliant exchanges in friendlier jurisdictions like Singapore and Malta, allowing customers to trade using real money.
He Yi told an interviewer that her company’s plans to work with governments and companies to create stablecoins has received inspiration from Facebook’s Libra plans. At the same time, however, Binance has tried to learn from Facebook’s failure to properly engage with regulators and wants to avoid that mistake.
She noted the similarities between the Binance and Facebook approach to their digital currency projects. Both companies plan to create independent groups to oversee their currencies, and both plan to create digital assets pegged to fiat currencies and other assets. Unlike Facebook, however, she said Binance plans to put more focus on compliance than technological innovation.