Regulation will go a long way in building consumer trust in crypto: Binance CEO

Crypto provides a non-traditional medium for wealth creation in Africa, CZ said

World’s largest crypto exchange Binance CEO Changpeng Zhao said that regulation aimed at complementing the growth of the cryptocurrency market will aid in building trust with consumers and institutions.

In an interview with TechCrunch, CZ explained that local regulators and the crypto industry shared the common goal of benefiting and protecting consumers. However, regulation designed to hinder innovation will delay mass adoption.

Effective regulation safeguards consumers and stimulate growth while poorly crafted laws stifle the industry and protects dated ineffective processes and institutions, he explained. Frameworks are required to prevent misuse and bad actors, CZ added.

Responding to the increasing legal scrutiny against Binance in US, EU and China, CZ said that the exchange is working with regulators from across the world and sharing best practices to improve the total regulatory environment in the industry: 

 “As regulators work to find the most effective way to engage with the industry, we are committed to 100% compliance globally. Clarifying and building the first set of standards is critical for the industry’s continued growth, and Binance wants to be a positive contributor.”

Africa provides a unique opportunity for crypto as it solves issues surrounding cross-border payments, remittances and currency devaluation, the executive said. He explained that crypto presents an opportunity for wealth creation and financial freedom amidst the poverty in Africa.

CZ pointed out that even today only 11% of the population in Africa have bank accounts. Many are seeking to skip the banking stage and directly access crypto via their phones. The continent has a wide range of opportunities for the crypto industry as people are looking for innovative and non-traditional ways to create wealth 

“Honestly, the potential is endless, and in emerging economies, this is even more true. New financial infrastructure, systems and processes are being created — transforming lives and creating the potential for financial freedom,” the expert concluded.