Several players in the crypto sector have spoken about the authorities’ desire to control crypto firms. This, without establishing clear rules on the basis of which to act. Yet these rules, if well crafted, can spur the entire industry in a more profitable direction.
Regulation strategy is wrong according to Binance CEO
The boss of the crypto firm Binance spoke on Wednesday April 12 on the regulatory dynamics of crypto firms. A policy criticized on several occasions and which seems to be the source of the loss of dominance of the company.
For Changpeng Zhao, the desire to regulate this sector on the basis of law is simply a bad thing. The official is essentially castigating the inadequacy of this policy to the realities of the crypto industry.
In particular, the leader denounces the fact that regulators take the crypto industry and the financial sector for granted. Two ecosystems that we should not, according to him, assimilate, their stakes and their challenges being completely different.
Typically, Zhao believes that, unlike the mainstream financial field, the crypto ecosystem should be under less strenuous pressure. Because, he underlines, the latter is nascent. Therefore, it should rather be guided in its growth through clear measures.
A much more favorable and profitable option than the all-out witch hunt, open against the industry for several months, against the backdrop of the unexpected collapse of several companies.
“The lack of regulatory clarity is the worst thing. It is better to have bad restrictive regulations. But imposing unclear regulations and prosecuting people into enforcing them is really, really bad,” said Binance CEO, on the occasion of a Web3 festival held in Hong Kong.
According to the latter, it is time for regulators and players in the crypto industry to seriously discuss this thorny issue. This choice is all the more necessary as the crypto market gains ground. A consequence of the failings of the traditional financial industry. It remains to be seen whether this call will be heard and acted upon.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
