Regulatory investigation around Binance could be because of a lack of clearness from governments, CZ stated.
A single entity can’t kill bitcoin and its fundamental blockchain technology; so state authorities and regulators should welcome blockchain technology and cryptocurrencies. This is stated by the CEO of the largest cryptocurrency exchange in the world.
“I don’t think anyone can shut it down now, given that this technology,” stated Binance CEO Changpeng “CZ” Zhao. “This concept, is in 500 million people’s heads,” CZ appended. He was during CoinDesk’s Consensus 2021 virtual conference.
“You can’t erase that.”
As per Zhao,
Beating off bitcoin and other cryptocurrencies now would be comparable to rejecting to accept Amazon’s internet business model when the e-commerce giant first started in the early 1990s. Cryptocurrencies are not here to wipe out traditional finance or government-backed fiat currencies but allow more “freedom of money.”
Cryptocurrency is “just a new tool that can increase the freedom of money all around the world,” Zhao stated.
Regulatory Scrutiny On The Rise
Zhao’s claim comes as Binance, the biggest cryptocurrency exchange by volume, encounters heightened regulatory scrutiny. Bitcoin and other cryptocurrencies are facing regulatory hurdles after becoming more popular than ever.
“I don’t view them as competing with regulators … and there is a way for us to work together.”
It’s not just regulators in the U.S.; government entities worldwide have raised questions about the business operations of Binance, a company that claims it has no headquarters in a specific country or region.
Zhao announced that his company does not intend to fight against any governments or countries. Adding the doubts about how Binance operates is likely due to a lack of regulatory clarity.
“We are not going against governments,” Zhao stated.
“There are times where the regulators or rules are not super clear. They are still being established in most parts of the world so there are some gray areas. But [we’ve] just got to experiment and work together and figure that out.”
Zhao does not seem to have a definite approach for his company, even though Binance is highly involved in almost every modern crypto innovation, whether decentralized finance (DeFi), non-fungible tokens (NFTs) or tokenized real-world assets.
The Binance way
“I’m not smart enough to predict what’s gonna happen, which one’s gonna be hot, which one user [are] gonna adopt,” Zhao stated.
“The way Binance is organized is that we have lots of experiments.”
Zhao stated that he has been trying to make fewer “top-down” decisions, especially when it comes to what he called “big” projects such as Binance Smart Chain (BSC), a public blockchain gaining steam as one of the more competitive rivals to the Ethereum blockchain.
“Binance Smart Chain came out of nowhere,” Zhao stated.
His statement appears to react to a growing number of hacks or exploits lately on DeFi protocols built on BSC, including some of the most significant monetary exploits in DeFi history. With BSC’s name associated with Binance directly, many have criticized Zhao and demanded he and Binance take responsibility for the exploits.
“It wasn’t my idea.”
“Binance Smart Chain is an independent blockchain, [and] we don’t have control over it,” Zhao stated.
“The projects on there are running very independently. If I talk to them, they will talk to me. But I don’t talk to them at all.”
Yet, Zhao stated he and his company benefit from BSC’s success because Binance coin (BNB) is the native crypto supporting BSC. Both Zhao and Binance remain large holders of BNB.
Contrary to Ethereum, BSC runs on a Proof-Of-Staked-Authority (PoSA) consensus mechanism controlled by 21 node operators elected by BNB holders. Several analysts have speculated that BSC’s validators could be in some way connected or tied to Binance.
Zhao has earlier stated that BSC had to sacrifice the decentralization element for scalability, which has been a problem for Ethereum.
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