Binance CEO says crypto should have stronger regulations

Chief executive of Binance, Changpeng Zhao, has called for a more robust and new crypto regulation for the industry. This is in light of recent developments and user participation in the market to cut some corners. 

‘We’re in a new industry. We've seen in the past week, things are going crazy in the industry. We do need some regulations, we do need to do this properly, we do need to do this in a stable way’, Zhao said in a meeting of G20 leaders at the summit in Bali.

Dealing with lots of controversies within the crypto space, the Binance CEO sees it as an utmost priority to settle some disputes concerning recent events like the FTX incident. What is the importance of Zhao’s words and why is a more robust regulatory system important for the crypto world? 

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Benefits of more regulations according to Changpeng Zhao  

The importance of the crypto regulations will turn the eyes of many sceptics and place a great emphasis on integrity which the crypto market continuously gets a knack for. Soon after, he stated that Binance stopped accepting deposits of FTX coins on its platform and urged other exchange sites to do the same.

‘I think the industry collectively has a role to protect consumers, to protect everybody. So it’s not just regulators. Regulators have a role but it’s not 100% their responsibility’, Zhao stated. 

Recent crypto collapses prove that the market needs to have regulations to ensure that its users and exchanges won’t fold when price plummets occur. Also, Zhao is seeing a positive light on how crypto regulations are being handled. 

Binance is the world’s largest crypto exchange in terms of trade volume. With regulations on the way, the company is optimistic about getting better in the market for the foreseeable future. 

Effects of regulatory changes on the crypto market

Too many regulatory measures will turn the cryptocurrency market into a centralised body. On the other hand, the lack thereof will make rules a little more lenient towards how crypto is being operated which can hurt users in terms of long-term damages like the FTX fiasco. For the most part, regulatory changes mitigate the harmful effects drawn from unsupervised transactions and operations that will lessen tendencies of hacks and foul play on the developers’ side. 

‘When a regulator looks at this industry the first thing they will do is borrow from what they already know—how they regulate banks, exchanges and move that into here. Later on they’ll realise this is a car, not a horse; this thing fits differently. You can’t put a saddle on it’, Zhao said.

Regulations are important in any financial body in the world including the crypto space. Only time will tell whether Zhao’s comments on the market needing changes in its regulatory body would benefit everyone. If you’re interested in more crypto news and Bitcoin casino games, visit Gamdom. 

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Words: Vonn Consul