🌐 [Analysis] Binance seeking “diplomatic immunity” to avoid regulators say cryptofund execs

At a recent cryptofund roundtable at SXSW in Austin, TX crypto fund managers discussed the meteoric rise of crypto exchange Binance. Participants focused on the exchange's cat and mouse game with governments and regulators. The exchange has already moved from China to Japan and now is spread out in Singapore, Malta, Bermuda, and Uganda. Panelists cited looser KYC and AML standards, token offerings that could be considered securities by regulators like the SEC, and the security like nature of the Binance Coin ($BNB) as reasons that the firm may soon seek regulatory capture on a national level. "I say this as half a joke, although I actually think it’s very likely: My guess is that [Binance’s] leadership seeks diplomatic immunity," said Ari Paul of BlockTower Capital Other participants agreed that Binance has been successful at using regulatory arbitrage as a strategy and has started to cozy up to governments in an attempt to find a friendly jurisdiction. Kyle Samani of Multicoin Capital pointed out that Binance has grown so big that regulators may have a hard time catching up. “You can say it’s illegal, and maybe you try and block IP addresses, that’s not clear if that will work in a meaningful way. You can fine them, but they make so much money, it kind of doesn’t matter. It’s unlikely that the leadership goes to jail, because they’re probably not in a country where anyone can arrest them,” Samani said during the panel.

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