At an event, Binance CEO Changpeng Zhao said that regulating the crypto sector is a better option.
Changpeng Zhao (CZ), the CEO of Binance, expressed on Friday, November 25, that crypto regulation is a better option for the world’s governments. As cryptocurrencies become more common.
Specifically, on Friday during a Binance event in Athens, Greece, CZ said that crypto regulation is better than fighting it following the FTX crash.
“I think most governments now understand that adoption will happen.”
For his part, Changpeng Zhao has compared the FTX collapse to the 2008 financial crisis. He also warned of cascading effects. Nonetheless, he said that he expects the cryptocurrency industry to recover.
Therefore, to restore confidence in the crypto industry, Binance has allocated millions of dollars to a crypto industry recovery fund.
Changpeng Zhao exposes that he does not fight against cryptocurrencies, he regulates
“I think most governments now understand that adoption will happen regardless. It is better to regulate the industry instead of trying to fight it.”
Indeed, the regulation of cryptocurrencies has become a focus of attention after the collapse of several platforms. Which culminated in the fall of FTX on November 11, after its clients withdrew $6 billion from the platform in a matter of three days.
As a consequence, according to Reuters, the collapse has left a million creditors facing losses, totaling billions of dollars. Additionally, the FTX contagion has continued to spread over the past two weeks, recently affecting crypto exchange Liquid, BlockFi, Genesis, and Gemini.
However, Changpeng Zhao said he hoped the industry would recover from this devastating blow. «This year was very unpleasant, the last two months too much has happened. I think now we see that the industry is healthier. Just because FTX happened doesn’t mean all other deals are bad.”
Will there be more countries adding Bitcoin as a reserve?
For example, El Salvador became the first country to make Bitcoin legal tender, along with the US dollar.
By the way, when asked if he sees countries adding cryptocurrencies like Bitcoin to their reserves in the future, Changpeng Zhao said that he hoped countries would start, particularly those without their own currency.
“I think the smaller countries will start first.”
By way of closing, Changpeng Zhao showed expectations of better things for the next year. And he stated that he expects a recovery soon as the “industry gets healthier.”
I say goodbye with this phrase from Thomas Lee:
“Cryptocurrencies will resurge despite a mediocre performance in 2022.”