Crypto regulation has been a topic of debate, and it seems to be making headway in recent times. Countries like the U.S. have pushed for crypto regulation and are setting up regulatory bodies for implementation. While the issue of regulation is yet to be decided whether it would advance the crypto space or stifle its adoption, the Binance CEO, CZ, believes that positive regulation and regulatory clarity are important for adoption.
He mentioned in an interview on Twitter that regulatory clarity allows businesses and users to know what they can or cannot do, that is, what they can engage in and how they should engage in them. Such regulatory clarity is helpful and makes adoption easier, CZ said.
Some regulations are “bad,” CZ emphasized. Just like China banned Bitcoin, exchanges and mining many times, it doesn’t allow so much to be done in a place like that. France, Dubai, Paris, and Bahrain were highlighted by CZ as regions with favourable regulation.
Binance as a crypto organization is the most scrutinized by regulators all around the world, CZ disclosed. “There is no other organization that operates with the level of geographic coverage and level of scrutiny that we are under.”
The firm has 15 licenses all around the world now. There is also Binance U.S. with 44 state licenses. The U.S. gives the best banking support to crypto exchanges, CZ said. He explained that they could deduct from the users’ bank account automatically using the ACH protocol, whereas most countries don’t have that level of banking support.
CZ analyzed the banking penetration in Africa to be around 11%, with most people not having access to financial products; they cannot get loans, and it takes days to make bill payments. He prescribed that with web3 technology, people with smartphones can access financial tools. “These technologies will be adopted in those regions because of the strong need for it. In countries where they have established financial services, there is less need to use crypto for payment, but crypto is a better tool than most traditional financial services,” CZ said.
binance is observed in places that are pro-crypto-crypto and pro-innovation, CZ mentioned and added that South Korea has similar regulations to the U.S.
Regulation can play out where some countries limit the number of coins an exchange can list or limit electric power in regards to Bitcoin mining. However, different places have different consideration factors.
Read also;
Building is the best way to fight FUD – CZ
What do you think of this article? Share comments below.
