Changpeng Zhao, the founder, and CEO of cryptocurrency exchange Binance, has revealed that regulation isn’t bad for the crypto sector. According to Zhao, if he were a regulator, he would check out the present regulations over the traditional financial industry and take them to cryptocurrency. The CEO noted that the cryptocurrency sector is vastly different from traditional finance.
Further, he maintained that he wasn’t several other people in the space; an anarchist or a libertarian. There exist several far libertarians that think that Binance has worked effectively with no rules and no government intervention. For Zhao, he doesn’t believe that society is ready for it. He doesn’t know how to self-secure.
The Relationship of Binance with Regulators
Over time, Binance has had a complex working relationship with the regulators which has thrived by tactfully navigating the regulations of cryptocurrency. In 2017, Binance vacated China before China’s government’s actions against the crypto exchange. It traveled to Japan, to Taiwan, and in 2018 Binance wooed the president of Malta to make many lax Cryptocurrency regulations in the country.
However, the spark died down, and Binance went elsewhere. Binance is now formally registered in the Cayman Islands. The Malaysia Securities Commission of Malaysia alleged in July 2020 that Binance works in the nation illegally. The Binance CEO was asked how to go about the regulatory minefields in November 2020.
He responded that they do not have a monolithic system created by tens of hundreds of people in his workplace. In the same November, the Block announced that the Shanghai office of Binance was closed in 2019 after the authority’s visit.
US Investigates Binance for US Trading Activities
Later, Binance maintained that it was not his office. In an interview conducted in November 2020, the CEO described the regulations as too restrictive but said today that it would be good if the first crypto regulations in the world are restrictive somehow. It isn’t good for businesses to have no rules. I am aware of other industry businesses that want a relationship with regulators.
In the meantime, the United States CTFC (Commodity Trading Futures Commission) is investigating Binance for allegedly permitting US traders to put wages going against the US regulations. Meanwhile, the Binance CEO has declined to offer an update on the CTFC investigation of Binance. Binance, founded in 2017, is a crypto exchange that offers a platform to trade various cryptos.