Two former executives of the Financial Action Task Force (FATF) were hired by the Bitcoin exchange Binance as advisers for regulatory matters. With the incorporation, the company would establish a closer link with government authorities on a global scale.
Rick McDonnell and José Nadeau arrive to deepen internal policies against money laundering (AML) and financing of terrorism (CFT). In McDonnell’s case, the official served in the past as FATF’s executive secretary, while Nadeau was the leader of the Canadian delegation to the regulatory group.
Through a statement, released this Thursday, March 25, Binance explained what will be the immediate tasks that McDonnell and Nadeau will carry out within their regulatory team. These functions include the following:
“Build stronger relationships with regulatory and law enforcement bodies around the world, provide guidance on regulatory policy, and reinforce the organization’s AML / CFT programs and the best,” said the largest exchange in the Bitcoin ecosystem by volume traded.
The company also highlighted that both executives will play a key role in supporting Binance’s consultation and liaison with the political authorities. In other words, the exchange would be applying a formula to lobby or “lobby” with the authorities that have decision-making power in the jurisdictions in which it operates or in which it would seek to operate in the future.
McDonnell and Nadeau’s appointment comes two weeks after Binance hired the former senator US Max Baucus as its policy and government relations advisor, a fact reported by Crypto News. The move of the exchange with the incorporation of the politician would be focused on “pulling the strings” necessary to open up to the US market.
The contracts coincide with the dissemination of a FATF regulatory draft that would increase its guidelines regarding Bitcoin and crypto currencies in general. The group’s proposal could violate user privacy, according to the Washington-based organization Coin Center.
As crypto currencies continue to gain new spaces within the international economy, Bitcoin companies also show a willingness to conform to government regulations. This is the case of the Bitcoin exchange, Huobi, which ratified the regulatory compliance of its operations around the world.
Mariah Zhao, COO of Huobi Technology, stressed during a virtual conference that, although adoption is growing on a global scale, regulatory uncertainty for crypto currencies still “prevents traditional institutions from entering the market on a large scale.”
According to data from Bitcoin Treasuries, institutional investments in Bitcoin already exceed $ 50 billion. The information service’s estimate is that 1.37 million BTC is already in the hands of large corporations or investment funds.