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Binance joins ‘Blockchain for Europe’ association

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Blockchain for Europe, a major European association advocating for the balanced regulation of the blockchain industry, has welcomed the world’s largest cryptocurrency exchange.

Binance, the biggest exchange by daily trading volume globally, has joined Blockchain for Europe, the association announced on Sept. 3.

By entering the group, Binance follows major industry companies like XRP-related firm Ripple, EOS developer Block.one, Fetch.ai, and Blockseed Ventures.

Alongside welcoming a new member in the association, Blockchain for Europe appointed Binance’s U.K. director Teana Baker-Taylor, as a vice-chair of the board.

Founded in late 2018, Blockchain for Europe is a major blockchain association in Europe that aims to promote education and proactive regulation of blockchain across the continent. At the launch, the association featured five member companies including Ripple, the NEM Foundation, smart ledger development firm Fetch.AI, and Cardano-related startup Emurgo.

According to the latest announcement from Blockchain for Europe, the association is now focused on responding to the European Union’s action plan on Anti-Money Laundering public consultation and the Digital Services Act consultation on smart contracts. The group is also contributing to ongoing discussions on the proposed EU framework for markets in crypto-assets consultation conducted in December 2019.

Binance has joined a number of regulatory-related groups in 2020. In late August, the exchange’s U.K.-based arm joined the self-regulating industry association CryptoUK as an executive member. With the new membership, Binance.UK will be working with government policy makers to develop a regulatory framework for digital assets in the country alongside major companies like Coinbase, CryptoCompare, and Ripple.

In June 2020, Binance also joined the Internet and Mobile Association of India’s digital asset exchange committee to contribute to crypto development in the country.



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Regulation

New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.