Changpeng Zhao: the crypto industry is not ready to function without government intervention

Zhao says the crypto sector needs government intervention.

Changpeng Zhao, Binance’s chief executive, said at a Clubhouse conference that the crypto industry cannot defend itself without government intervention. The report comes from Decrypt.

\n\n

\”If I were a regulator, the most logical course of action would be to transfer the existing rules from traditional finance into the crypto industry,\” Zhao said.

\n\n

He added that the crypto industry differs markedly from traditional finance. According to the Binance founder, he does not consider himself a libertarian or an anarchist, unlike many members of the crypto community.

\n\n

\”There are many extreme libertarians who believe we function well without any rules and government intervention. I don’t think our community is ready for that. I don’t know how we will defend ourselves,\” Zhao explained.

\n\n

Earlier, Bloomberg reported that the Commodity Futures Trading Commission (CFTC) began an investigation into Binance over possible access for U.S. residents to trade crypto derivatives without a license. The agency itself did not comment.

\n\n

The exchange also hired a former U.S. senator Max Bokusa as an advisor on regulatory and legal matters. He was tasked with maintaining liaison between the company, U.S. regulators and authorities.

\n\n

On March 14 Bokusa said that the CFTC does not accuse Binance of any violations, but is trying to understand the rapidly growing crypto industry and \”is simply doing its job.\”

\n\n

Earlier, Forbes published a piece about Binance developing a strategy to deliberately deceive regulators and extract hidden profits from U.S. customers.

\n\n

In November the exchange filed a defamation lawsuit against the publication, but in February 2021 withdrew it.

\n\n

Also in November Binance demanded that US customers leave the platform within 14 days. Previously, for trading on the platform, American clients could indicate at registration that they were not residents of the country. Binance.US launched in September 2019.

\n\n

Earlier, ForkLog reported that Binance-linked companies are registered in both the Cayman Islands and the Seychelles.

\n\n

Follow ForkLog’s bitcoin news on our Telegram — cryptocurrency news, rates and analysis.