CZ Says He Could Bring Traditional Financial Regulations To Crypto

Binance’s founder and CEO Changpeng Zhao or CZ Says he could bring traditional financial regulations to crypto during a Clubhouse conversation as we read more in our latest Binance news.

In the Clubhouse conversation, CZ says he could bring traditional financial regulations to crypto if he was a regulator. He said that regulation is not really a bad thing for the crypto industry and noted that this industry is different from traditional finance:

 “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.”

The Binance CEO added that he wasn’t unlike others in the industry who are mostly libertarian or anarchist:

 “There are many extreme libertarians that believe we have functioned well without any rules, without any government intervention. I don’t think as a society we are quite ready for that, at least in my view, I don’t know how we’ll keep ourselves safe.”

Binance has quite a complicated relationship with regulators and thrived so far because of its successful navigating of the regulatory framework. The exchange left China in 2017 before the government crackdown on crypto exchanges and went to Taiwan and Japan but then moved to Malta because of the favorable crypto regulations. However, the spark faded in Malta as well so Binance had to find a new home. Now, the company is officially registered in the Cayman Islands.

Back in 2020, the Malaysia Securities Commission alleged that Binance operates in the country illegally but the exchange clarified that they are working by the rules and that the operations of the exchange won’t be troubled by the allegations, as CZ said:

 “We don’t have one monolithic system developed by thousands of people in my office.”

The Block even reported that the Binance Shanghai office was shut down in 2019 after a visit by authorities and the exchange later claimed that it wasn’t an office while interviews with employees cited otherwise. CZ described regulations as overly restrictive but mentioned it would be OK if the first step towards global regulation is somewhat restrictive:

 “Having no rules is also not good for businesses. I know other businesses in the industry that want to have a collaborative relationship with regulators.”