Changpeng Zhao (CZ), the CEO of Binance, the largest crypto exchange by trading volume, has recently discussed the paramount way to increase the global adoption of cryptocurrencies.
In a recent interview with Yahoo Finance, Zhao stated that regulatory clarity has the capability to trigger a wider crypto adoption. He said although those who joined the crypto bandwagon early may not like to hear the word “regulation”, having suitable regulations will ease adoption and bring more users.
CZ Binance noted:
“I do believe that having regulatory clarity will actually ease adoption. There is a group of guys who got into crypto early, many of them may be libertarians, anarchists, etc. They hate any kind of regulation.
“But I think for the mainstream users, the rest of the 90% or 95% of the users that are still not in crypto yet, having regulation will actually ease them into crypto.”
Zhao added that “Regulatory clarity definitely helps. But it’s not to say that all regulations could be good. We have to look at the specific regulation. For example, we’ve seen in other countries where they have a clear ban on crypto. That’s one type of regulation that’s clearly not good… Bad regulations are bad. Good regulations are good.”
Recall that the SEC Chair Gary Gensler had claimed that virtually all cryptocurrencies in the market have the tendency to be termed securities. He said Bitcoin (BTC), the largest flagship crypto, has characteristics similar to traditional commodities.
However, contrary to Gensler’s opinion, Senator Toomey said cryptocurrencies should not be regarded as a security because they possess distinguishing characteristics, adding that these factors should be put into consideration when developing a regulatory framework for the fast-growing industry.
Reacting to Gensler’s assertion, Binance CEO also said, “I believe classifying all of crypto as security is probably a bit simplistic. There are many different types of cryptocurrencies. Some of them are closer to currencies, and some of them are closer to other asset types. I could clearly point to many different tokens that are clearly not securities. I think that’s a more simplistic view.”