Changpeng Zhao (CZ), the CEO of leading cryptocurrency exchange Binance, believes restrictions on crypto ads will not impact the demand for digital assets significantly. He said this earlier today during an interview with CNBC, adding that regulators are probably clamping down on crypto promotions because the demand is high at the moment.
Explaining why he believes the demand for cryptocurrencies will not take a hit, CZ said the crypto ecosystem obtains most of its users by word of mouth. He pointed out that leading platforms like Google and Facebook had previously banned crypto ads. As such, there were never many places for crypto firms to advertise their products.
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He added that these restrictions saw companies come up with ingenious methods like promoting their offerings through bus stop ads. However, this option did not work out well. With a history of thriving despite having limited advertising options, CZ believes the crypto space will do well despite global watchdogs moving to regulate crypto promotions.
This news comes after Singapore’s MAS and Spain’s CNVM started clamping down on crypto promotions earlier this week to prevent firms from using misleading ads to lure retail investors into trading crypto. The UK government also announced plans to bring crypto ads under the regulatory scope of the FCA.
Binance continues its search for a friendly jurisdiction to set up its headquarters
In the interview, CZ also pointed out that Binance is still searching for a crypto-friendly jurisdiction to house its headquarters. He disclosed that Singapore is among the options the exchange is considering, despite its need for Binance to file a Payment Services Act application, which regulates payment services. However, the act does not have a crypto section.
However, he believes that Singapore, or any other country, might introduce a new favourable regulatory framework. CZ pointed out most countries do not have crypto-specific regulations, and Binance is working with multiple governments to address this issue.
While he admitted that some governments are skeptical and conservative about crypto, others have a positive outlook on the nascent asset class. According to him, such governments believe crypto technology is the fundamental layer of the future FinTech industry, money, and essentially every other sector in the economy.
While he acknowledged Dubai is making some significant steps towards creating a framework for crypto regulation, CZ said no country is quite there yet. He pointed out that regulators have to change the approach of only focusing on whether centralized exchanges adhere to KYC and AML requirements and dive deeper into DeFi, NFTs, and the metaverse.
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