Binance CEO Changpeng Zhao wrote an open letter calling for “transparent regulation” of the cryptocurrency industry. According to him, this factor is very important for the harmonious development of the blockchain asset niche in the future.
Zhao also pledged to do everything possible to ensure that Binance “complies with all local regulations” in many regions of the world.
Note that this is not the first time Changpen has commented on the topic of cryptocurrency regulation. In particular, in April of this year, he made it clear what approach to working with digital assets would be the right one from his point of view. It is about transferring the existing rules of work in traditional finance to the blockchain asset industry.
According to Zhao, this will be enough to motivate the further development of the niche and attract new investors in this area.
However, not everyone will agree with Changpen. For example, in May, Miami Mayor Francis Suarez made it clear that he considered Bitcoin “too big to be regulated.” This means that it is simply pointless to hinder the development of cryptocurrency.
What will happen to the regulation of cryptocurrencies
Notably, the Binance CEO made a statement shortly after its marketplace faced multiple difficulties in dealing with financial regulators. Now Binance is actively discussed in various government organizations – from the UK to Japan, Thailand and the Cayman Islands.
In particular, on Friday last week, representatives of the Cayman Islands Monetary Authority (CIMA) said that Binance, Binance Group and Binance Holdings Limited are not registered, licensed or regulated in the jurisdiction of the state. On the same day, the Securities and Exchange Commission of Thailand filed a lawsuit to bring criminal proceedings against Binance for allegedly operating in the country without a license. In connection with what was happening, some users of the exchange even had concerns about its possible blocking. At the same time, Changpen made it clear on his Twitter that the platform’s management will solve all the problems – as it did before.
Zhao believes that widespread adoption of cryptocurrencies needs “transparent regulatory infrastructures in different countries. Here is his remark, in which the entrepreneur shares his vision of the situation. The quote is from Decrypt.
In fact, the greater number of regulatory rules is a positive sign that the industry is becoming more mature, because it lays the foundation for a secure image of cryptocurrencies in the eyes of the majority of consumers who wish to participate in its development.
Indeed, the lack of clear rules for working with cryptocurrency in many regions scares away investors. This is especially true for those people who have not previously interacted with digital assets and are not familiar with the principles of blockchain operation. They fear the possibility of losing their investments – and for a reason. Still, there are enough hackers in the cryptocurrency industry who want to steal other people’s coins.
And since the networks of many cryptocurrencies are completely decentralized – that is, with equal participants – it is most likely that it will not work out forcibly and quickly to return the stolen money. In this regard, many large players prefer to wait for the situation to improve before starting to accumulate digital assets.
Changpen also took the opportunity to brag about Binance’s regulatory affairs team. The exchange staff includes former FATF executive secretary Rick McDonnell and former head of the Canadian delegation to the FATF Jose Nado. In addition, on the eve of Binance announced a partnership with the new director of this team, Jonathan Farnell, who previously worked at eToro.
I believe that a well-designed regulatory framework, in the long term, will become a solid foundation that will truly make cryptocurrency an integral part of people’s daily lives.
Zhao stated that “compliance with all requirements is the right way. ” Binance is committed to localizing its operations in accordance with local regulations, he said. At the same time, the exchange “seeks to comply with the relevant legislation wherever it operates. “
We consider the issue of regulation to be really very important for the industry, but with one caveat – the actions of financial regulators should be aimed specifically at protecting consumers and the smooth development of the cryptosphere, and not at strict prohibitions. In the latter case, the crypt will still continue to develop, but at the same time it will sink even deeper into the abyss of the shadow economy.
Accordingly, the authorities need to carefully consider approaches to interacting with a niche. In this case, countries will be able to benefit from the popularization of cryptocurrencies and various blockchain platforms. And there is no doubt about their mass distribution in the future.