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

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."

Read more about


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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


CoinDesk - Unknown
DeFi Troubles in a Bear Market

Notional Finance CEO Teddy Woodward discusses the current crisis facing many DeFi lending and borrowing protocols.

CoinDesk - Unknown
CoinDesk - Unknown
Bitmark Raises $5.6M, Launches Interoperable NFT Wallet

The wallet, named “Autonomy,” is looking to bridge the gap between mainstream art collectors and the world of NFTs.

CoinDesk - Unknown
CoinDesk - Unknown
Solana-Based Chingari Tokens Plunge 87%, and Developers Flag Big Sell Order

Developers claimed a large holder dumped their tokens, causing prices to plunge.

CoinDesk - Unknown
CoinDesk - Unknown
Belgium Regulator Ponders Crypto as a Security

The EU’s landmark crypto law won’t take effect for a couple of years, but existing stock-trading rules may still apply, financial regulator FSMA says.

CoinDesk - Unknown