Binance CEO Changpeng Zhao (CZ) says that, despite numerous regulatory checks, his cryptocurrency exchange has proven its reliability, maintaining a large user base and market share. He said this during an AMA session on X.
According to him, attempts to draw parallels between Binance and the FTX case and other FUD news aimed at fear, uncertainty and doubt give the platform an opportunity to demonstrate its strengths.
“I think today we are a much stronger company than two years ago,” CZ said, adding that Binance is “much ahead of the game when it comes to regulatory compliance.”
In March CFTC accused the trading platform of violating derivatives trading rules and operating without a license. In June SEC filed a complaint against Binance on 13 counts, including the sale of unregistered securities and unlicensed operation in the United States. The company also faces regulatory scrutiny in Canada, Australia and France over suspected regulatory violations.
One week after the SEC lawsuit, Binance.US’s market share fell by 78%, and overall trading volumes on Binance itself dropped by 52%, according to CoinGecko.
Nevertheless, CZ remains supportive of broader regulation of the crypto market. In his view, this could dampen bearish sentiment.
As positive developments for the industry, he cited recent court rulings in favor of Ripple Labs and the asset manager Grayscale.
However, the Binance chief stressed that he regards regulatory-issues lawsuits as “somewhat excessive” and hopes that continuing cooperation between crypto firms and regulators will bring positive shifts and clarity in regulatory norms.
Earlier, CZ acknowledged the superiority of DeFi over CeFi in the next bull market.