Regulation is good for the crypto industry: Binance CEO
Binance is the world's leading cryptocurrency exchange, and CEO Changpeng Zhao believes that regulation would be a good thing for the crypto space.
Binance CEO Changpeng Zhao believes that regulation will be good for the cryptocurrency space. He made this known during an interview with CNBC's Squawk Box earlier this week. The cryptocurrency space has grown to become a $3 trillion market, and this has attracted the interest of regulators globally.
Due to the changing nature of the cryptocurrency market, regulators have found it hard to properly regulate the space. Binance, the world's leading crypto exchange, has come under heavy scrutiny in recent months from regulators in various parts of the world.
As a result, Binance had to make several changes to how it operates. CZ said Binance is transitioning from a tech company to a financial company, and regulation is needed within the crypto space. He added that;
"This year, most of the regulators around the world are looking at crypto intently, and many of them are communicating with us. So we feel this is the right time" to issue a call for a global framework. We feel that it is important for industry players to have a seat at the table. And we also feel that some regulations, if they're made in a vacuum, may not have practical considerations in how they are applied, and they don't get applied very well."
Changpeng Zhao added that further regulation within the crypto market is inevitable. However, he believes that while regulation might seem strange for an industry that became popular due to its decentralised nature, it will be good for the crypto space in the long run.
Binance has been hiring former regulators in various parts of the world to lead its regulatory efforts. The exchange had to discontinue some services in certain parts of the world in a bid to regulate its activities and operate within the purview of the law.