Binance shows white paw to regulators
Changpeng Zhao („CZ“) explained his vision in an interview with Fortune. According to him, we are witnessing a shift in the ecosystem: the arrival of institutional investors and the increased attention of central banks has led to a regulatory wave. The good news is that this is creating official projects that rely on the latest blockchain technologies, including MNBCs. But it comes with more constraints, which claimed one victim last week: BitMEX.
Changpeng Zhao explains that Binance is particularly careful to comply with regulators‘ expectations, so as not to suffer the same fate as its competitor. The CEO develops :
„We just want to maintain a very prudent structure that is fully compliant with the regulations. …] We want to make sure we don’t have any U.S. customers. »
This is precisely why a Binance clone, Binance US, emerged in 2019 with enhanced measures to appease US regulators in advance.
MNBC VS Bitcoin, who will win?
This pro-regulatory approach, which is relatively new for Binance considering its beginnings, undoubtedly contributes to the relative openness of Changpeng Zhao to MNBC. Binance’s CEO explains that any large-scale digital currency would be beneficial to the crypto industry, if only by allowing the general public to learn about this field.
With one limitation: the first MNBCs to be launched will be much more restrictive than a crypto currency such as Bitcoin, according to CZ. Their centralized nature would therefore not allow them to play in the same yard. But eventually, MNBCs and Bitcoin could be put in competition:
„If a government offers a new cryptography that is even more open, free and with fewer restrictions than Bitcoin, but is faster and cheaper to use, then it will threaten Bitcoin. But it’s good for the industry, it means it would be something even better than Bitcoin. »
In any case, Changpeng Zhao’s opinion agrees with some analysts, who believe that the risk for Bitcoin is not a ban by governments, but direct competition from a currency that is at least as efficient.
One thing is certain: no matter how the wind changes, we will find Binance positioned. The exchange has already benefited from the cut-off that the regulators have dropped on BitMEX. It has seen a 44% increase in the volume of futures contracts compared to last quarter, harvesting users who have fled its competitor.