Bloomberg: Binance's He Yi Believes Venus Is Better Positioned Than Libra for Regulatory Compliance

According to BlockBeats news, Bloomberg reported today that, Binance, the world's largest cryptocurrency exchange, stated that their stablecoin Venus, which they have launched, has learned from Libra's experience and will be better equipped to deal with regulators.

The cryptocurrency exchange, registered in Malta, has been in contact with regulators since the first day of launching the Venus (also known as the Morning Star) digital currency. "If we want to launch Venus in a country, we will ensure it complies with regulations," said He Yi, co-founder of the exchange, in an interview.

BlockBeats reported that Binance announced last week its plans to seek partners to create a "stablecoin," a digital currency pegged to traditional currency, making Venus less volatile than cryptocurrencies like Bitcoin. In a detailed interview about the project, Binance indicated that Venus drew much inspiration from Facebook's Libra, but government resistance worldwide to the social media giant's plans serves as a warning. According to BlockBeats, Facebook had hoped that, under the governance of many partners such as Visa Inc., Uber, and Spotify Technology SA, the new currency would be used as early as next year for global everyday transactions. However, since the release of the white paper in June, Facebook's introduced Libra blockchain and its stablecoin have faced extensive regulatory scrutiny.

Binance plans to establish an independent association to oversee the newly launched stablecoin Venus, backed by a basket of government-supported currencies and securities. However, He Yi stated that the company will take a "more conservative" approach to advancing the project, prioritizing regulatory compliance over technical development. He said that unlike Libra, Venus will focus on partnerships with governments and companies in non-Western countries. In a special promotion to China, it was referred to as the "Libra of the Belt and Road Initiative."

Founder of Beijing-based crypto research firm TokenInsight, Hubery Yuan, stated: "So far, regulators worldwide have been unable to accurately assess the potential risks stablecoins could pose to their financial systems, which is why they are very cautious of currency projects like Libra. In theory, Binance will face the same challenge as Facebook."

In Binance's announcement of Venus in China, the exchange suggested that governments worldwide establish a regulatory sandbox to allow private companies to issue their own stablecoins for payments and cross-border settlements. The statement noted: "Rather than miss the opportunity, it is better to embrace change." He Yi mentioned that Binance may create a new open-source blockchain for Venus instead of using the current Binance Chain, as Binance Chain already supports a range of stablecoins. Additionally, Binance stated that they are willing to forgo some commercial interests to attract more partners, but the plan has not been finalized yet.

For more information about Binance's Venus, please refer to: "Binance to Launch Cross-Border Payment Stablecoin Venus: Self-Proclaimed 'Regional Version of Libra,' Covering Multiple Countries Globally"

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