At a Twitter Spaces event, Changpeng Zhao accused critics of Binance of trying to compare his company to the bankrupt FTX crypto exchange run by Sam Bankman-Fried. Despite problems with regulators and the spread of FUD (fear, uncertainty and doubt) in the media, Binance maintains a large customer base and market share, Zhao said.
“I think we are a much stronger company today than we were two years ago. In addition, Binance is way ahead of the game in terms of regulatory compliance,” Zhao said.
In August, the US Department of Justice began investigating Binance and its ties to Russian banks for possible violations of US sanctions against Russia. Earlier, the exchange was sued by the US Securities and Exchange Commission (SEC), accusing the site of fictitious trading and operating without a license in the United States. Amid the lawsuit from the agency, the outflow of funds from Binance amounted to $778 million, while the volume of assets on the platform remained significant.
And yet, Zhao sees improvements in the regulatory environment for cryptocurrencies. He noted that in France, Hong Kong and Japan there have already been positive changes in the regulation of the industry. Zhao is confident that the recent court rulings in favor of Ripple Labs and asset management company Grayscale Investments are also helping to bring clarity and could ease bearish pressure on the crypto market.
“Involving the courts in the regulation of digital assets is a little overkill. Right now it seems that the rules for crypto companies are not clear, so regulators are just taking measures to comply with the standard requirements, which is sad. However, communications with US officials may change the attitude of regulators towards cryptocurrencies for the better,” Zhao said.
Earlier, the head of Binance said that the bill to regulate cryptocurrencies in the European Union (MiCA) could become an international standard for the entire industry.
Source: Bits
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