For weeks, the world's largest crypto exchange Binance has been facing various accusations - in several countries. Now the founder and CEO of the company is speaking out.
Regulation - Cornerstone for Crypto-Adaptation?
The world's largest crypto exchange Binance has been under fire for weeks: The exchange is facing regulatory headwinds, including in the UK, the Cayman Islands, Thailand and Singapore. For example, the company is accused of operating without the necessary licence. Binance CEO Changpeng Zhao has now commented on this in an open letter - and puts the events in a different light.
“I believe a well-developed legal and regulatory framework in the long term will be a solid foundation that truly makes crypto essential in everyone’s daily life.”
For CZ, "more regulation [...] is indeed a positive sign" - a sign that the crypto industry is maturing. Because, CZ said:
"This lays the foundation for a wider population to feel safe to participate in cryptocurrencies. I believe that a well-developed legal and regulatory framework will be a solid foundation in the long run, making crypto truly indispensable in everyone's daily life."
The wider acceptance of cryptocurrencies such as Bitcoin or Ethereum around the world has also created the need for clearer regulatory frameworks in different countries, the CEO said. Zhao compares the pressure from regulators to the initial development of the automobile. In the early days of the car, too, "laws and policies were developed along the way" - on the fly, so to speak. The crypto-entrepreneur:
"When the car was invented, there were no traffic laws, traffic lights or even seat belts. Laws and guidelines were only gradually developed as cars hit the road. These are frameworks and laws that we now take for granted and that allow this powerful technology to be widely and safely used."
"We haven't always done everything right"
Crypto is similar in that the technology can be accessible to everyone. However, framework conditions are needed to prevent abuse and fraud. For the further growth of the crypto industry, the development of standards is therefore crucial, he said. CZ:
"And Binance wants to make a positive contribution."
Zhao recalls that his company has only been around for four years. The exchange has grown very quickly and has "not always done everything exactly right", but they are learning every day. He says they now want to make it clear that they are working with regulators and proactively hiring more talent and putting "systems and processes" in place to protect users.
"Compliance is a journey - especially in new sectors like crypto. [...] We also recognise that with growth comes more complexity and more responsibility."