Exclusive Interview with CZ: Being Placed Under the Microscope by Regulations, the Market is Recovering in a Bearish Trend
Interview with CZ: Regulations and Market Recovery in Bearish Trend
Original author: Mike Dalton, Cryptoslate Compiled by: BlockingNews
Drive out FUD
Recently, there has been a lot of controversy in the cryptocurrency market surrounding Binance, with Forbes, Financial Times, and Reuters all reporting on issues such as alleged fund abuse, prompting Zhao Changpeng to provide a special explanation. He believes that mainstream Western news tends to report negatively on cryptocurrencies, and Binance is easily subject to FUD (Fear, Uncertainty, Doubt) due to its large scale.
Zhao Changpeng explains: “If you write a negative article about a small exchange, no one will care, but if you put Binance’s name in the headline, hoping it’s negative, people will click more.”
In addition, Zhao Changpeng also said that he has become a target of attacks by Western media due to his “race”. Although he was born in China, he is a Canadian citizen. Although Binance was founded in China, it no longer operates locally due to regulatory requirements, and Chinese employees have been relocated.
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Zhao Changpeng said that despite the existence of FUD, Binance’s goal is to be “as transparent as possible”, and it also provides a reserve proof report. However, Zhao Changpeng admits that transparency “has its limits”, and if Binance publicly discloses all wallet addresses, it will expose supplier and partner information, which will damage privacy and security and affect competition.
Global Regulatory Regulations
Regarding regulatory regulations, Zhao Changpeng stated that Binance has been actively participating in global regulation, but because of its large scale, regulatory agencies tend to put it “under a microscope”. In terms of regulation, although the cryptocurrency industry is increasingly cooperating with regulators (cryptocurrency companies such as Coinbase and Kraken are also cooperating with regulatory agencies), competitiveness has become weaker. Zhao Changpeng further stated that the cryptocurrency regulations being implemented in the Middle East and Europe are very promising, and he previously revealed that Binance’s business in the Middle East and North Africa (MENA) is growing.
In addition, Binance once considered acquiring a bank, but found that it needed to comply with local regulations extensively, and the cost and risk of the bank were high, and the profit was often not high.
Cryptocurrency Market Status
Regarding the current state of the cryptocurrency industry, Zhao Changpeng clearly stated that the market is recovering from the bear market in 2022, but investors have mixed emotions because no one knows what will drive future “explosive growth”:
“What will drive the next cycle? Everyone is looking for it now, but no one can say for sure, and that may be why so many people are flooding into meme coins, but at least this situation indicates that there is money in the market, just waiting to be deployed.”
Zhao Changpeng specifically pointed out that his optimistic view of the market trend may be wrong, and investors in the bull market should only invest what they think they can afford to lose, rather than seek overhyped investments. Finally, Zhao Changpeng revealed that he experienced failure when he first invested in stocks and cryptocurrencies, and “learned this lesson the hard way.”