- In an online talk at the Hong Kong Web3 Festival this week, CZ, CEO of Binance shared a few insights as to the present and future of Web3.
- He emphasized the value of clear crypto regulations and mentioned that “the worst” situation is a lack of clarity
- CZ says that Binance is taking several steps to protect consumers’ crypto funds, and that self-regulation is also important.
Changpeng “CZ” Zhao, CEO of Binance, participated in a fireside talk organized by Deng Chao, CEO of HashKey Capital, at the Hong Kong Web3 Festival this week.
In the interview, CZ spoke about issues such as the future of centralized finance (CeFi), asset security, and the widespread use of cryptocurrency and Web 3.
He further emphasized the value of crystal-clear cryptocurrency regulations over the current regulatory uncertainty.
“The worst situation is when regulations lack clarity,” he said.
CZ also added,
“Having bad restrictive regulations is better than that. And then having unclear ones and then chasing people by enforcement is really, really bad”
His remarks come in response to a recent complaint filed by the US Commodities Futures Trading Commission (CFTC) accusing CZ and Binance of running an “illegal” exchange and a “fake” compliance program.
A development CZ called “unexpected and disappointing” at the time.
CZ’s Views On Centralized Finance (CeFi)
When asked about his views on security incidents that have occurred recently in the CeFi area and ways to prevent them from happening in the future.
He said that Binance is taking several steps to protect consumers’ crypto funds, including enhancing infrastructure, implementing proof of reserves, and utilizing innovative technologies.
According to studies, the majority of people are unable to effectively safeguard even their keys, which causes them to lose their crypto assets.
He claims that there are some small concerns with both CeFi and DeFi, such as security issues with DeFi wallets.
CZ also answered questions on managing shareholders’ trust as well as fostering trust in CeFi enterprises. He mentioned that the trustless technology used by the majority of blockchains helps consumers feel more secure and safe.
CZ states that as the majority of the crypto community uses Binance, it enjoys high user trust. At the same time, self-regulation is also important, and even nations, banks, and businesses run certain risks.
Government Regulation’s Possible Effect On Crypto Adoption
In the interview, CZ mentioned that attempts by the government to regulate cryptocurrencies might unintentionally promote their popularity.
In his words,
“They are trying to regulate crypto by closing down banks, shutting down fiat access, and imposing more limitations in the traditional financial systems, which is really pushing more people into crypto and doing the opposite of what they want to achieve.”
Zhao called on governments to assist in lowering fees, streamlining transactions, and enhancing user experience in order to retain an interest in conventional finance.
He said that as more people look to decentralized alternatives for their financial requirements, the absence of improvements in traditional banking would continue to drive the growth of cryptocurrencies as a whole.
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