Binance CEO Changpeng Zhao (CZ) says that most governments know that crypto adoption will happen regardless of what they do. “It’s better to regulate the industry instead of trying to fight against it,” the Binance executive emphasized.
Binance’s CEO on Crypto Regulation After FTX Collapse
The CEO of Binance, Changpeng Zhao (CZ), talked about cryptocurrency regulation following the collapse of crypto exchange FTX Friday at a Binance event in Athens, Greece.
I think most governments now understand that adoption will happen regardless. It’s better to regulate the industry instead of trying to fight against it.
FTX, a major cryptocurrency trading platform, collapsed and filed for bankruptcy on Nov. 11. An estimated 1 million creditors are facing losses totaling billions of dollars.
Zhao has compared the FTX meltdown to the 2008 financial crisis. He also warned of cascading effects. Nonetheless, he said he expects the crypto industry to recover.
CZ said that this year “was a very nasty year,” elaborating:
The last two months too much has happened. I think now we see the industry is healthier … just because FTX happened it does not mean that every other business is bad.
To restore confidence in the crypto industry, Binance has committed two billion dollars to a crypto industry recovery fund. The exchange provided details of the initiative this week.
Responding to a question about how he sees countries adding cryptocurrencies, such as bitcoin, to their reserves in the future, Zhao said he expects countries without their own currency to lead the trend. He opined, “The smaller countries will start first, I think.”
In September last year, El Salvador became the first country to make bitcoin legal tender alongside the U.S. dollar. Since then, the country has bought thousands of BTC for its Treasury. El Salvador is now buying one bitcoin daily, Salvadoran president Nayib Bukele announced last week.