Binance has announced “plans to initiate an open blockchain project, Venus, an initiative to develop localized stable coins and digital assets pegged to fiat currencies across the globe.” New trends are emerging at a global level in the cryptocurrency exchanges and banking sector.

Binance stressed the need to embrace change in the cryptocurrency industry in an “orderly manner” per regulatory guidelines.

Three specific courses of action have been suggested to establish a strategic position in the blockchain and stable coin enterprise.  The financial sector needs regulatory sandbox mechanisms with the creation of stable coins and cross-border payment systems.

A recent announcement from Coinbase read thus:  “Through the acquisition of Xapo’s institutional businesses, we’re now proud to act not only as of the gateway for millions of people to cryptocurrency but also as the world’s largest and most trusted steward of digital assets.”

Coinbase is currently supporting nearly 42 countries, with more than 20 million customers globally. It focuses mainly on facilitating buying and selling of Bitcoin through the bank account, credit cards, and debit cards.  Just like Binance, Coinbase as well has its stable coin, which is the USD coin (USDC).

Convenience and reliability are the selling point of every kind of cryptocurrency. 

Meanwhile, the blacklisting of Bitcoin addresses by the US is just starting.  The government is paying close attention to illegal activities associated with cryptocurrencies and Bitcoin.

The recent case action by the OFAC under the Specially Designated Nationals, according to Spiro, establishes the requirement for “strict cryptocurrency compliance programs to immediately identify high-risk behavior and activity.” We can expect to see the blacklisting of several Bitcoin addresses in the future.  This is mainly due to “the nature of open blockchains.”

The amount of cryptocurrency lost in security breaches can be prevented by identifying the questionable transactions taking place against compliance and regulatory norms.

Increasing numbers of lawmakers and regulators are focusing their attention on the industry.  Therefore it is becoming critical than ever for cryptocurrency businesses to demonstrate best compliance practices.

Several financial institutions and cryptocurrency exchanges who are subject to US jurisdiction are under an obligation to screen for “blocked persons.”  Those who violate these sanctions will likely face civil penalties as high as $10 million and in some cases, criminal charges as applicable.

Public blacklisting of cryptocurrency addresses is a significant effort by OFAC and FinCEN as a mode of exerting financial pressure on criminals and related organizations.