Speaking at the Hong Kong Web3 Festival, Binance CEO Changpeng Zhao (CZ) said that it is important for crypto regulators to have a deep understanding of the industry to facilitate crypto regulation. that’s right
According to CZ, “There is a strong tendency to borrow regulations from the traditional financial industry to crypto, which is actually very different from the traditional banking and financial industry,” he went on to explain. Knowing the answers to simple questions like how assets are classified is important in making regulatory decisions for an industry. Because there are many types of crypto assets, and some of them may look like securities. Other assets such as commodities or utility token Some may have a combination of these characteristics.
When asked for advice on a good regulatory framework, CZ said having unclear regulations is “worst” and having clear regulations is better. He went on to say that it’s best to let the industry fully develop before issuing regulations. The specific reason for this is that it is difficult to predict what will be popular in the industry.
In regards to crypto industry players and their approach to regulators, CZ suggests that it is necessary to actively engage with them. He explained that Although many crypto regulators around the world are open. However, skepticism may also deter players in the crypto industry from engaging with regulators in the discussion.
CZ emphasizes the need for players in the crypto industry to exercise patience. He said it was understandable that first drafts were too restrictive. But over time We can always find a balance.
The post “Crypto regulators must have deep knowledge and understanding. to issue proper rules,” the Binance CEO appeared first on Bitcoin Addict.