Don’t fight crypto, regulate it, says Binance’s Changpeng Zhao
Changpeng Zhao (CZ) has urged governments to regulate crypto instead of fighting it.
CZ claims that most governments now understand how cryptocurrencies work.
The adoption of cryptocurrencies will happen regardless, the Binance CEO added.
Governments should focus on crypto regulation
Changpeng Zhao, the CEO of leading crypto exchange Binance, believes that governments across the world should not focus on fighting cryptocurrency. Instead, they should focus n regulating the market.
He mentioned this while speaking at a Binance event in Athen on Friday. According to CZ, regulation rather than opposition to the crypto industry is a better option for world governments as cryptocurrencies gain more mainstream adoption. He said;
“I think most governments now understand that adoption will happen regardless. It’s better to regulate the industry instead of trying to fight against it.”
Governments across the world have turned their attention to the cryptocurrency market since the FTX exchange collapsed three weeks ago. Despite the FTX crash, CZ said he is optimistic that the crypto industry will recover soon. He said;
“(This year) was a very nasty year, the last two months, too much has happened. I think now we see the industry is healthier… just because FTX happened, it does not mean that every other business is bad.”
Countries will add Bitcoin to their reserves in the future
El Salvador became the first country in the world to make Bitcoin a legal tender. When asked if countries would add cryptocurrencies like Bitcoin to their reserves in the future, CZ said he believes it would happen, especially those countries that don’t have their own currency. He said;
“The smaller countries will start first, I think.”
His speech comes a few days after he revealed in an interview that the crypto industry is fine despite the FTX collapse. At the time, CZ said;
“I think we will see a little bit of contagion. Whenever a trading platform collapses, there are many other people or institutions with money on the platform. I think we saw Genesis halting withdrawals. I think there would be one, two, or a couple of others that would be affected. Every time a platform fails, there are cascading effects. But overall, the industry is fine.”
Binance remains the world’s leading crypto exchange, with a daily trading volume of around $11 billion.
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