The CEO of Binance has criticized regulation by enforcement and warned that having no regulatory clarity is even worse.
Changpeng Zhao (CZ), the founder of Binance, was speaking at a fireside chat during the Hong Kong Web3 festival.
Zhao told Deng Chao of the Hashkey Capital that “Having no regulatory clarity is the worst. Having bad restrictive crypto regulations are better than that. And then having unclear ones and then chasing people by enforcement is really, really, bad.”
Binance CEO Believes Regulators Are Pushing More People Into Crypto
In Zhao’s opinion, the regulatory drive against crypto puts the industry in the limelight. He says, “They are trying to control crypto by shutting down banks, shutting down fiat access, putting more restrictions in the traditional financial markets, which actually pushes more people into crypto, which is doing the reverse of what they want to do.”
The four-day event in Hong Kong has welcomed over 10,000 attendees and 300 industry speakers, including Zhao.
However, he is optimistic about crypto regulations in the future. He believes that the first version of regulations is often overly restrictive, and finding an optimized balance will take a while.
Zhao’s business has been in the crosshairs of regulators recently. Last month, the U.S. Commodity Future Trading Commission (CTFC) filed a lawsuit against Zhao and Binance, alleging insider trading and violation of trading and derivatives rules.
Then the Australian Securities Commission canceled Binance’s derivatives license last week.
Hong Kong Banks Support Crypto
While Binance has faced trouble in some jurisdictions, Zhao believes others are more receptive. He is optimistic for Hong Kong as the country’s banks have started supporting crypto. He tweeted, “HK banks start to support crypto. We will see more funds moving there. USDT alone is $80b market cap. More stablecoins to come…”
Hong Kong’s largest virtual bank, ZA Bank, aims to become the bridge between digital assets and fiat currencies. The development comes as the country’s financial chief, Paul Chan, believes that “the time is ripe for the city to invest in the Web3 digital economy.”
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