Changpeng Zhao joined ‘Squawk Box’ on CNBC to state that regulations are good for the crypto industry, as the company attempts to win over regulators.
Binance CEO Changpeng Zhao is open to further regulation as he seeks to transform Binance from a decentralized technology firm to a centralized financial services company. The insight into the future direction of the exchange came in an interview on CNBC’s ‘Squawk Box’.
In the interview on Monday, CZ accepted that the company had simply become too big to remain unregulated.
“Right now we are at the pivotal point,” said CZ. “We need to change from a technology company to a financial services company. We started this process 4-5 months ago and we’ve done a lot since then,” he added.
CZ went on to explain how the company is investing in brick-and-mortar infrastructure as a way of helping confused regulators and to accelerate adoption.
“It’s very clear that for a centralized exchange we need a centralized structure, so we are setting up headquarters, offices, regional headquarters and local branches etcetera… the regulators don’t know how to work with decentralized structures. So we’re setting up all those centralized structures now.
“We believe very strongly that regulations are good for this industry. Right now crypto adoption is probably around 5%, probably around 4-500 million around the world have crypto. These are the early adopters. For the rest of the 7.5 billion they probably prefer some kind of regulated entity with more structure. We think this is better for the industry to grow.”
The Binance Bridge
The host of Squawk Box was keen to draw CZ on what valuation Binance would have in an IPO, suggesting that the firm would be worth $300 billion, but CZ declined the offer to put a figure on it. He did however say that Binance, if listed, would be one of the most valuable companies in the world.
In the remainder of the interview, CZ instead explained how he views the future role of Binance as the bridge between traditional and decentralized finance.
“In the crypto industry, it is not black and white,” he said. “There are groups of people who are very focused on decentralized technologies, decentralized structures. Most of those projects are relatively small.
“Today if we look at where all the wealth is, most of the wealth is still in traditional financial systems. We need to build a bridge between those two, and Binance wants to be the bridge between those two industries.
“If you want to be the bridge we gotta connect with traditional financial industries and we need to be fully licensed and we need to have centralized structures, but just because the Binance has a centralized structure doesn’t mean that the whole crypto has to be centralized.”
Source : bsc.news
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