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Changpeng Zhao believes that the cryptocurrency industry needs clear and stable regulations.
Changpeng Zhao (CZ), the CEO of Binance, believes that clear and stable regulations are needed in the cryptocurrency space.
He said this while speaking during a gathering of G20 leaders at the Bali summit. CZ said;
“We are in a new industry, we saw it last week, and things are going crazy. We need regulations, we need to do it right, and we need to do it stably. »
According to CZ, stakeholders must play a collective role in protecting consumers in the cryptocurrency industry. He added that;
“I think the industry collectively has a role to play in protecting consumers, in protecting everyone. So it’s not just regulators. Regulators have a role, but it’s not 100% their responsibility.
His comment comes days after the collapse of FTX, one of the world’s leading cryptocurrency exchanges.
FTX filed for bankruptcy last week after facing enormous financial pressures. The exchange’s woes began after reports surfaced that it was lending funds to clients at Alameda Research, which in turn uses the funds for investments.
FTX’s activities were against its terms and conditions, leading users to withdraw their funds from the platform. The crypto exchange was unable to process all orders and had to suspend withdrawals.
FTX had to file for bankruptcy at the end of the week, leading to one of the biggest crashes in market history.
Several experts have called for the regulation of cryptocurrencies. They argue that market regulation would weed out bad actors. In August, Sasha Ivanov, founder, and CEO of smart contract blockchain Waves said;
“Crypto market manipulation is a sign of the times; as much as we in space wish it weren’t, it’s there nonetheless. People with large balances and high levels of intelligence can profit at the expense of retail traders. Our resolution is regulation, which is on its way. In the meantime, we have been working on our own solutions, such as the upcoming launch of PowerDAO to help us regulate our own ecosystem.
Countries around the world continue to find appropriate ways to regulate cryptocurrencies and promote innovation in the space.
