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Binance’s reported activities in Russia highlight potential privacy concerns in crypto markets

Binance’s reported activities in Russia highlight potential privacy concerns in crypto markets, Crypto Trading News

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A detailed Reuters article describes how Binance has reportedly developed relationships with Russian officials. It started last year when Russian intelligence wanted the exchange to disclose customer details to help fight crime in particular, it seeks to invest millions of dollars in Bitcoin track down collected by opposition leader Alexei Navalny.

Navalny is said to have used the funding to expose corruption within the government. Binance told Reuters that compliance measures require it to respond to “reasonable requests from regulators and law enforcement.”

Reuters reports that this was “part of Binance’s behind-the-scenes efforts to develop relationships with Russian government agencies to boost its growing business in the country.”

Binance has continued to operate in Russia after invading the country in Ukraine and says it is aggressively imposing sanctions. In 2019, Binance’s CEO stated that the company’s mission in Russia is to increase “money freedom” and “protect users” while remaining open to potential privacy issues not only about Binance and Russia, but in the field of digital assets in general.

There is every reason for a robust KYC (Know Your Customer) and AML (Anti-Money Laundering) program. Such programs are necessary to eliminate money laundering that funds terrorism and other bad deeds. However, what happens when countries decide that the exchange must inform political opponents in order to operate within their borders?

In this case we are talking about Russia. However, consider the Canadian trucker convoy. There, too, emphasis was placed on stopping the ideological financing.

It’s a scary situation when Big Tech, the government, or a combination of these are able to shut down a person’s livelihood or worse. What happened during the Canadian trucker convoy should be a stark reminder to everyone, regardless of political ideology, that concentrated power over our financial system can quickly become a daunting situation. In fact, Bitcoin was founded on the premise that it was designed as a decentralized payment system.

We all agree that we want controls to ensure digital assets are not supporting terrorists and drug cartels. But where is this line drawn? And what should industry do when governments require more compliance than is necessary to keep the public safe?

Should an exchange simply withdraw from a market in such cases? Or should they comply with even the most authoritarian demands in order to stay in business? It is not difficult to imagine the incline at work here.

The difficulty with this question is compounded when we consider the emergence of CBDCs digital assets developed by a central bank. Consider China’s extensive experimentation with its own e-yuan. The country has taken a series of moves that would lead many to characterize its program as authoritarian.

How can we best move forward with CBDCs without giving up our financial freedom and privacy? I think a crucial component is to demand a wall between the government and our financial transactions. A government that offers a non-anonymous alternative to cash is not offering any alternative to cash at all.

Richard Gardner is the CEO of Modulus. He has been a world-renowned subject matter expert for more than two decades, providing complex insights and analysis cryptocurrencyCyber ​​Security, Financial Technology, Surveillance Technology, Blockchain– Technologies and best practices in general management.

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Binance’s Reported Russian Activity Highlights Potential Privacy Concerns in Crypto Markets post appeared first on The Daily Hodl.

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