Crypto Needs Centralized Systems to Integrate With Traditional Finance, Binance CEO Says
Centralized systems are required to bring money into crypto from mainstream finance and to provide an exit route.
Dec 31, 2021 at 1:26 p.m. UTCUpdated May 11, 2023 at 5:47 p.m. UTC
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The crypto industry needs centralized systems in order to integrate with the traditional finance industry, according to Changpeng “CZ” Zhao, CEO of Binance.
- The founder and CEO of the world’s largest crypto exchange by trading volume was responding to users’ queries for a video on Binance’s YouTube channel on Thursday. One user had stated: “The centralized organizations are always ready to f**k you up. #DeFi is the future.”
- “If you think that, don’t touch any centralized systems,” Zhao said. “Stay in the decentralized world, all the power to you.”
- Centralized systems are needed to help bring money into crypto from mainstream finance while also providing an exit route, he said.
- Another user bemoaned the lack of platforms to trade crypto that don’t require know-your-customer (KYC) authentication, following Binance’s own regulatory challenges in this area in recent months.
- “There are smaller platforms that don’t require KYC, but I would highly recommend you do not use those platforms,” Zhao responded.
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Jamie Crawley is a CoinDesk news reporter based in London.