Binance is one of the exchanges that have been faced with much regulatory scrutiny this year. The exchange’s CEO, Changpeng Zhao, has made several changes to make the exchange achieve compliance.
In a CNBC interview, Zhao spoke on the state of crypto regulations and how they have transformed the sector.
Zhao welcomes crypto regulations
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Crypto regulations have become a major thing in the crypt sector, with different countries swooping in to ensure that investors who participate in this sector can get the protection they need, given the volatile nature.
As aforementioned, Binance has been facing much regulatory scrutiny. In the recent interview, Zhao stated that Binance was at a “pivotal point” where it was changing from a technology company to a financial services company.
Zhao stated that Binance has been working on regulatory compliance to fit the description of a financial services company in the last five or six months. He also noted that Binance was changing towards a centralized approach that involved setting up headquarters, regional branches and more.
Zhao also spoke of the valuation of Binance, stating that it was one of the most valuable companies globally. It is the largest exchange platform in terms of trading volumes.
The other measures that Zhao and Binance have taken to achieve compliance include releasing the “crypto bill of rights”, and it has hired ex-government and ex regulators that have joined the Binance. Many of these hirings happened this year when Binance started facing much backlash from global regulators.
Binance wants to be the bridge to the traditional finance industry
Zhao also stated that while regulations in the crypto industry were kicking in, many firms were still more focused on decentralization. As such, Binance wanted to be a link between these firms and the traditional finance industry.
According to Zhao, most of the wealth was in the traditional finance system, and Binance can become a bridge between these two industries. However, he also noted that if Binance wanted to be this bridge, it needed to be fully licensed and have a centralized structure. He also noted that despite the centralization aspect, Binance would still maintain its interaction with decentralized platforms such as DeFi, GameFi and NFTs.
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