Changpeng Zhao believes that the cryptocurrency sector needs clear and stable regulations.
Changpeng Zhao (CZ), the CEO of Binance, believes that clear and stable regulations are needed in the cryptocurrency space.
He said this while speaking at a gathering of G20 leaders at the summit in Bali. CZ said;
“We’re in a new industry, we’ve seen in the past week, things go crazy in the industry. We do need some regulations, we do need to do this properly, we do need to do this in a stable way.”
According to CZ, stakeholders need to play a collective role in protecting consumers in the cryptocurrency industry. He added that;
“I think the industry collectively has a role to protect consumers, to protect everybody. So it’s not just regulators. Regulators have a role, but it’s not 100% their responsibility.”
His comment comes a few days after the collapse of FTX, one of the leading cryptocurrency exchanges in the world.
FTX filed for bankruptcy last week after facing enormous financial pressure. The exchange’s woes began after reports surfaced that it was lending customer funds to Alameda Research, who, in turn, is using the funds for investments.
FTX’s activities were against its terms of conditions, resulting in users withdrawing their funds from the platform. The crypto exchange wasn’t able to fulfill all orders and had to pause withdrawals.
FTX had to file for bankruptcy by the end of the week, resulting in one of the biggest crashes in the history of the market.
Several experts have been calling for the regulation of cryptocurrencies. They argue that regulating the market would eliminate bad actors. In August, Sasha Ivanov, founder and CEO of the Waves smart contract blockchain, said;
“Crypto market manipulation is a sign of the times; as much as we in the space wish it wasn’t so, it’s there nonetheless. People with large balances and high levels of intelligence are able to profit at the expense of retail traders. Our resolution is regulation, which is on its way. In the meantime, we have been working on our own solutions, such as the upcoming launch of PowerDAO to help us regulate our own ecosystem.”
Countries all over the world continue to find appropriate ways to regulate cryptocurrencies and promote innovation in the space.