In the midst of the scrutiny by regulators, especially from the US SEC, CZ, CEO and Co-founder of Binance, spoke at an AMA addressing the concerns of users on Binance and the industry at large.
One of his assertions is that Binance is a company with no debt, and shouldn’t be compared with the collapsed FTX and that despite the FUD against Binance, it has only kept on growing stronger.
He added that all user assets are held on a one-to-one basis, meaning that they are secured at all times.
The Proof of Reserve is one of the tools that most crypto exchanges have used to assure their users of their accounts. Binance has also resorted to using that means to reveal what its balance is to the crypto community.
DeFi will lead the way
He further noted that when it comes to what the financial market will be, DeFi will definitely be the future of the industry. DeFi is the aspect of crypto that is focused on products built with decentralized governance.
The Co-founder said the exponential growth in DeFi speaks for itself as it exceeds the CeFi space in terms of trading volume. He believes that increased decentralization will only enhance the cryptocurrency industry’s long-term prospects.
Crypto is needed globally
Other discussions he entertained included the differences between the crypto regulatory framework of Bahrain and Dubai. He added that the two markets have different levels of development and regulatory frameworks for virtual assets.
He shared that Binance has dedicated the past two years to compliance efforts and recognized that gaining bank support requires additional work.
CZ also affirmed the importance of crypto in each country especially for developing countries with weak financial systems. He said that with the help of decentralized financial systems such as Bitcoin and other blockchain-based infrastructures, the financial systems of these nations can be better.
He called on all leaders of nations to create an enabling environment for the adoption of crypto that is suited for their society. The CEO also assured listeners of Binance’s commitment to be compliant with regional and global regulations.
