Binance CEO: ‘I Would Bring Traditional Financial Regulations To Crypto’

[bbc.reporter]

I respect what he has done for himself and what he has achieved quickly in only a few years, however, Changpeng Zhao is larping in this article. Those regulations he claims he would bring would kill his exchange and send him to prison.



The CEO and founder of crypto exchange Binance, Changpeng Zhao (“CZ”), said that regulation is not necessarily a bad thing for the crypto industry.

“If I was a regulator, the most logical thing I would do is to look at the existing regulations in the traditional financial space and bring them into crypto,” CZ said, before noting that the crypto industry is significantly different from traditional finance.

Binance has a complicated relationship with regulators and has thrived (so far) by skillfully navigating cryptocurrency regulations.  

Binance left China in 2017 ahead of the government’s crackdown on crypto exchanges. It went to Japan, then to Taiwan, and then in 2018 Binance courted the Maltese president to make the most of the country’s lax crypto regulations. But the spark faded and Binance had to go elsewhere. Now the company, officially registered in the Cayman Islands, operates from...who knows?

Read in full https://decrypt.co/66876/binance-ceo-i-would-bring-traditional-financial-regulations-to-crypto

[avikz]

What CZ is saying now, would become a reality in few years of time. Regulation in crypto market is inevitable. Do you think any government will let crypto holder make hundreds of percentages of profit without putting it into a framework from where they can earn tax income?

Governments will not let the crypto market flourish as a free market. So you can indeed expect some sort of regulation to come in place in every country. Crypto market has gone beyond the expectation and now it is too hard to ignore, even for the governments. So what CZ is saying, would eventually become a reality, no matter how hard we protest!

[crwth]

I didn't know that Binance has been jumping from place to place on their registration. Their hard work paid off, for sure.

To cater to more customers, there would be people who would be asking how they are abiding by the protocols and regulations given by a regulatory body. It's going to go at that point, just like what avikz said. It's for protection for the users in the exchange, too, if you think about it. There could be possible insurance if and when the exchange goes down, and you would be given an amount of money.

[(o)(o)ilikeboobs(o)(o)]

Being based in a country on the world map is also a way to assert a brand. Maybe Binance will go ahead with the IPO as Coinbase did. The adoption of traditional regulations on cryptocurrencies is fine, but the point is how they are. If too strict, especially high taxes, will be a step preventing cryptocurrencies from entering the world to integrate and expand with other markets.

[Ucy]

One of the best ways to safely handle the regulation issue is to Properly Decentralize and make provisions for governments to join millions of network participants to regulate the decentralized space. The rules for regulation have to be in harmony with the ideals/principles of truely decentralized cryptocurrency.
His moving from one country to another doesn't sound sustainable long-term.

[bbc.reporter]

What CZ is saying now, would become a reality in few years of time. Regulation in crypto market is inevitable. Do you think any government will let crypto holder make hundreds of percentages of profit without putting it into a framework from where they can earn tax income?

Governments will not let the crypto market flourish as a free market. So you can indeed expect some sort of regulation to come in place in every country. Crypto market has gone beyond the expectation and now it is too hard to ignore, even for the governments. So what CZ is saying, would eventually become a reality, no matter how hard we protest!

However, do you think that this is good for the cryptospace and for how we use cryptocurrency? I am quite certain it will not be. It might be good in the minds of some people because they speculate it would make their coins pump more. They will defend this as adoption hehe.