Binance CEO 'CZ' Responds to Global Regulatory Pressure, Calling Compliance a 'Journey'

"We are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries," said CZ.

AccessTimeIconJul 7, 2021 at 6:04 a.m. UTC
Updated Sep 14, 2021 at 1:21 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Binance CEO Changpeng "CZ" Zhao has likened the recent pressures by regulators against his exchange business to that of the initial development of the car.

In an open letter on Wednesday, CZ said the adoption and development of crypto contained many parallels to regulations around automobiles in that "laws and guidelines were developed along the way."

"We are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries," said CZ. "More regulations are, in fact, positive signs."

Binance has been caught in a tangled web of regulatory developments as of late including in the jurisdictions of the Cayman Islands, the U.K., Thailand, and Singapore, among others. At times, the exchange has attempted to stay ahead of the regulatory curve including having hired two former members of the Financial Action Task Force to its advisory team in March.

In his letter, the CEO reiterated that his exchange possessed requirements for using his platform including stringent insider trading policies where users are unable to actively trade any asset within a 30-day period.

In addition, a Secured Asset emergency fund (SAFU) designed to protect user assets and listing standards as well as a firewall to separate out the listing team, was also added in July, the CEO noted.

"Compliance is a journey – especially in new sectors like crypto," said CZ, who noted the crypto industry contained a lot of uncertainty. "We also recognize that with growth comes more complexity and more responsibility."

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about