- Binance’s Venus Stablecoin gets NY’s approval
- It will now compete with Libra and USDT among others
- Binance is quickly amassing the number of services under its umbrella
The leading cryptocurrency exchange by 24-hour volume, Binance announced plans for Venus, a stablecoin backed by the US dollar. This announcement was made last week by Binance’s co-founder He Yi, who said that the coin will be fully regulator friendly and promises to abide by all regulatory hurdles.
If we want to launch Venus in a country, we’ll make sure it complies with the regulations.”
– He Yi, Co-founder, Binance
This planned stable coin from Binance will be issued with a partnership from Paxos, a platform for building regulated financial infrastructures to enable digital and physical movements.
Regulatory Approval on the Way
As explained by He Yi, Binance will try to ensure all compliances are met before going forward with the product, something they learned from there Libra debacle. The Libra team, after their announcement of the stable coin, was heavily scrutinized by numerous regulators for their non-compliance towards regulatory authorities.
A press statement released by the New York State Department of Financial Services (NYDFS) issued their approval concerning Binance’s USD stable coin which they call BUSD. The Superintendent of Financial Services Mr A Lacewell expressed his approval by saying “These approvals reflect DFS’ leadership in the virtual currency arena and our priority to protect consumers in every decision we make.”
The Department has delegated Paxos to act as both the custodian and the issuer for BUSD, and will regularly audit the dollar holdings. Currently, NYDFS is the first state or federal agency in the United States (or anywhere in the world for that matter) to supervise virtual currency with the promulgation of its landmark BitLicense regulation in 2015.
Increased Competition in the Market
While the Libra team is trying to figure out the hurdles involved and China plans their in-house digital currency, the Binance team has raced them all behind by careful planning every strategy and learning from mistakes by their competition. The proposed stable coin, Venus will differ from other stable coins by partnering with other governments and corporates and playing it safe all the way. The Venus expansion is expected to run parallel with Libra and China’s digital currency. With theses advancements, Binance is surely leaving all competition behind.