- Binance CEO appeared in an interview with Bankless to discuss the state of the crypto industry.
- CZ leveraged the opportunity to dismiss FUD, saying big players like Binance often get negative reports from mainstream news.
- Zhao also addressed global regulations saying the crypto sector is becoming less competitive and more cooperative regarding regulations.
Binance CEO Changpeng Zhao, alias CZ, commented on the state of the cryptocurrency industry and the market in general during a May 29 interview with Bankless.
Binance CEO dismisses FUD
Binance CEO used the opportunity to try to eliminate Fear, Uncertainty, and Doubt (FUD) in the market by discussing some of the latest controversies, particularly concerning his company.
Notably, Binance recently denied claims by Forbes, the Financial Times, and Reuters about its alleged misuse of funds and supposed ties to China. According to CZ, however, mainstream news sources tend to cover crypto with a negative bias, explaining why giant players such as Binance specifically attract FUD. In his words:
If you write a negative article about a smaller exchange, nobody cares … but if … you put Binance’s name in the title, and hopefully something negative, people click more.
CZ also highlighted that his ethnicity made him an easy target. Notably, while Changpeng Zhao was born in China, he is a Canadian citizen. Similarly, while Binance was established in China, it no longer operates in the country following regulations and insists it relocated Chinese staff.
Accordingly, CZ asserts his high regardfor transparency despite the FUD, noting that Binance currently provides proof-of-reserve (PoR) reports. Further, Zhao acknowledged the limits to transparency, arguing that if the giant exchange disclosed all of its wallet addresses, it would reveal Binance’s vendors and partners, compromising privacy and security and affecting competition.
Binance CEO addresses global regulations
CZ also acknowledged engaging with global regulations, noting that regulators put Binance “under the microscope” more because of its size. Nevertheless, he proposed that the crypto sector is becoming less competitive and more cooperative regarding regulations. Further, CZ assured that firms such as Coinbase and Kraken are working with regulators, urging that collective engagement can redistribute Binance’s need to engage with regulators to other companies.
In a broader sense, Zhao explained that the Middle East and Europe are implementing the most promising crypto regulations. This echoes his assertions during a previous AMA discussion where he said Binance has a growing presence in the Middle East and North Africa (MENA).
CZ also highlighted that the flagship exchange considered acquiring a bank at one point but later determined that such a move would require extensive compliance with local regulations. In his opinion, banks are expensive to run, carry huge risks, and are often not very profitable.
Zhao on the state of the market
Commenting on the current state of the crypto market, Zhao opined that the market is recovering from the bear market recorded in 2022, which in his opinion, gives the market a “mixed mood” as it is unclear what will drive “explosive growth” in the future.
What’s going to drive the next [cycle]? … everyone’s looking for that right now … and when we’re not sure, this is probably why many people pile into memecoins … it shows that there are funds ready to be deployed.
Nevertheless, CZ acknowledged that he could be wrong about trends, cautioning investors who started investing in crypto during a market downturn.
As part of his closing argument, Zhao urged those investing during a bull market to invest only in what they feel comfortable losing and not seek out overhyped investments. “He learned this lesson the hard way” during his early days investing in stocks and crypto.