The CEO of cryptocurrency exchange Binance, Changpeng Zhao, believes that the digital asset industry cannot fully develop without regulatory intervention.
The founder of Binance noted that the cryptocurrency space is significantly different from traditional finance. However, in the place of regulators, Zhao would apply existing rules intended for the financial sector to the cryptocurrency industry. He previously stated that governments are overly tightening their approach to cryptocurrencies.
Now Zhao thinks it is perfectly normal for the industry to obey certain rules. He is convinced that the absence of any provisions negatively affects the development of any business. Many industry companies are now trying to improve relationships with regulators, and Zhao supported this position.
“Many people believe that the cryptocurrency industry can develop without supervision and without government intervention. But regulation isn’t so bad. At the very least, it will allow us to secure our operations and protect users, ”Zhao said.
At the same time, Binance has a difficult relationship with regulators. In 2017, the exchange was forced to leave China due to the harsh measures of the Chinese government against cryptocurrency exchanges. In 2019, information appeared in the media about the closure of Binance’s Shanghai office after a visit by police officers. Zhao denied these rumors, saying that Binance does not have an office in Shanghai.
In addition, last year the Malta Financial Services Authority (MFSA) reported that Binance is not controlled by local authorities and is not licensed to operate in the country. Zhao said the exchange does not have a main office in Malta, and in today’s world, companies do not need to have physical offices.
Zhao previously stated that in order to successfully conduct cryptocurrency business, exchanges must raise industry standards and work closely with regulators to ensure the protection of digital assets and personal data of users.
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