Binance CEO Changpeng Zhao (CZ) says most governments know crypto adoption will happen regardless of what they do. “It is better to regulate the industry instead of trying to fight against it,” the Binance executive stressed.
Binance CEO on Crypto Regulation After FTX Collapse
Binance CEO Changpeng Zhao (CZ) spoke about cryptocurrency regulation following the collapse of crypto exchange FTX on Friday at a Binance event in Athens, Greece.
I think most governments now understand that adoption will happen anyway. It is better to regulate the industry than to try to control it.
FTX, a major cryptocurrency trading platform, collapsed and filed for bankruptcy on November 11. It is estimated that one million creditors face losses totaling billions of dollars.
Zhao compared FTX’s collapse to the 2008 financial crisis. He also warned of cascading effects. Nonetheless, he said he expects the crypto industry to recover.
CZ said that this year “has been a very bad year”, adding:
Too much has happened in the past two months. I think we now see that the industry is healthier… just because FTX happened doesn’t mean all other companies are bad.
To restore confidence in the crypto industry, Binance has committed two billion dollars to a crypto industry recovery fund. The exchange provided details on the initiative this week.
Responding to a question about how he sees countries adding cryptocurrencies, such as bitcoin, to their reserves in the future, Zhao said he expects countries without their own currencies to lead. the trend. He said: “The small countries will start first, I think.”
In September last year, El Salvador became the first country to make bitcoin legal tender alongside the US dollar. Since then, the country has purchased thousands of BTC for its treasury. El Salvador now buys one bitcoin a day, Salvadoran President Nayib Bukele announced last week.
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