Binance Publishes A Constitutional List Of Crypto Rights

Amid stifling regulations from uninformed US financial regulators, crypto exchanges are creating recommended frameworks for the industry in their stead. Binance is the latest to do so, after it recently launched its list of “10 fundamental rights for crypto users.

The list includes both freedoms and protections Binance believes every human deserves when interacting with Crypto.

Here are the exchange’s rights recommendations – alongside some of Crypto Adventure’s commentary.

Binance’s Decalogue

  1. Every human being should have access to financial tools, like crypto, that allow for greater economic independence. One of the core tenants of Bitcoin’s value is that it globally protects its user’s property rights through cryptography.
  2. Industry participants have a responsibility to work with regulators and policymakers to shape new standards for crypto assets. Coinbase has attempted this already, releasing a digital asset policy proposal for congress last month.
  3. Responsible crypto platforms should protect users from bad actors and implement Know Your Customer (KYC) processes to prevent financial crimes. Though KYC is an industry-standard now, some Defi protocols like SOVRYN consider it antithetical to crypto for privacy reasons.
  4. Privacy is a human right, and personally identifiable information (PII) data should be subject to strict levels of protection. However, privacy in cryptocurrency is a nuanced subject. While some cryptos like Monero provide incredible anonymity, others can track an individual’s transactions through blockchain. That means exchanges can collect PII and use them to track users’ transactions even after withdrawing from the business.
  5. Crypto users have the right to access exchanges that keep their funds secure, in safe custody with comprehensive deposit insurance. Unfortunately, past discussions have failed to provide such assurances to their users, such as Mt.Gox.
  6. Healthy markets should maintain a robust level of liquidity to ensure a stable and frictionless trading environment. As explained by CryptoAdventure, high liquidity and trading volume on exchanges lead to reliable price measurements.
  7. Regulation and innovation are not mutually exclusive. This would match SEC chairman Gary Gensler’s approach to the industry, describing himself as “technology-neutral, not policy neutral”.
  8. Closing the knowledge gap is essential when it comes to crypto. Indeed, multiple surveys demonstrate that most people know very little about cryptocurrencies. For example, an Australian poll found that over half of respondents believed Elon Musk invented Bitcoin.
  9. Marketplaces that offer derivative instruments should be subject to the appropriate regulations. Interestingly, the SEC has been quicker to accept Bitcoin Futures ETFs than an ETF tied to direct BTC purchases.
  10. Crypto regulation is inevitable. Though it can feel stifling, laws can protect crypto users from the rampant scams infiltrating the space.
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The constitution concludes that Crypto “belongs to everyone” and that regulators should help it shape the future of global finance.

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