The CEO of Binance, Changpeng Zhao, has said that nations should regulate crypto rather than fight it since crypto adoption would occur anyway.
Friday, at a Binance event in Athens, Greece, CZ said that crypto regulation has once again become a hot subject in light of the recent fallout of the cryptocurrency exchange FTX. He recommended nations establish restrictions rather than oppose the cryptocurrency industry.
“I believe the majority of countries now recognize that adoption will occur anyway. It is preferable to control the sector than fight against it “Zhao stated.
As reported, FTX stated a couple of weeks earlier that company had filed for Chapter 11 bankruptcy in Delaware. The exchange had loaned up to $10 billion worth of client funds to its linked trading business, Alameda Research, to support risky wagers, a move that has angered FTX consumers.
An estimated one million creditors stand to lose billions of dollars. In addition, the FTX infection has continued to spread over the last several weeks, most notably impacting crypto exchanges Liquid, BlockFi, Genesis, and Gemini.
In the meanwhile, CZ likened the collapse of FTX to the financial crisis of 2008 but said that the industry would revive.
“(This year) was a really unpleasant one, and too much has transpired in the previous two months. I believe we can clearly see that the sector is healthier… just because FTX occurred does not indicate that every other firm is failing “he remarked.
The CEO remained optimistic about Bitcoin acceptance. When asked whether he believes nations would begin adding cryptocurrencies such as Bitcoin to their reserves in the future, Zhao said that he expects countries to begin doing so, especially those without their own currency.
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