Binance, the world’s largest cryptocurrency exchange, operates under the leadership of CEO Changpeng Zhao. After facing a recent crisis stemming from the bankruptcy filing of his company’s competitor, FTX, he advocated for better regulations in the industry.
Ahead of the G20 leaders’ summit on the Indonesian island of Bali, business leaders met to discuss the regulations. One of these meetings was hosted by Zhao, who spoke about the need for rules to protect customers and keep his industry stable.
After the crazy week that the crypto industry experienced, Zhao, considered one of the most influential figures in the field, declared that FTX had filed for bankruptcy on the 11th. The insolvency was caused by doubts about its solvency.
Before buying FTX, Binance considered a possible bailout by the company. However, they decided that this action was not beneficial to the firm and withdrew their offer. As CEO Changpeng Zhao explained in a public letter, this was because Binance already owned the shares.
After the bankruptcy of FTX, bitcoin experienced a 60% loss. At the end of 2020, its value was the lowest since December 2018. With this in mind, the new crypto storm has caused extreme volatility in the markets.
Zhao emphasized the need for regulation to be more advanced and include more traditional financial laws than simply changing existing laws. Furthermore, he believed that companies had a responsibility to regulate their industry.
As part of his message, he emphasized the importance of merchants placing greater emphasis on safety by avoiding any shortcuts. Additionally, he encouraged merchants to work to educate their customers about finances.
CZ, an Indonesian businessman dressed in a traditional batik shirt, said the hearing needed to improve transparency for the entire industry.
Elon Musk is the South African businessman who owns the transport and services company Grab. The G20 business forum was also attended by the CEO of Amazon, Jeff Bezos; the head of the office of the president of South Korea, Yoon Suk-yeol; and Anthony Tan, CEO of Grab.