While adopting and implementing advanced regulatory frameworks for cryptocurrencies could take decades, an interplay between regulators and crypto industry players could help expedite the process, according to the founder and CEO of Binance, the world’s largest cryptocurrency exchange in terms of daily trading volumes.
“We should set realistic expectations for government regulatory bodies and traditional banking structures. We cannot expect them to change overnight… it could take a few decades,” said Changpeng Zhao at a conference held during GITEX Technology Week.
“Most regulators are taking the first step and the channels of communications are really important,” he added.
For nations to future-proof their financial structures, Zhao believes that adopting cryptocurrencies at the soonest is imperative in order to reap their full advantages and benefits.
“Governments should take as many opportunities to adopt bitcoin and blockchain as possible…having an ecosystem of projects onshore is very important,” said Zhao.
“Issuing stable coins and central bank digital currencies for the country or region is very important. Having clear regulatory guidelines on how exchanges can or cannot operate in your country, custodian guidelines, payment guidelines – having all of those balances can be very important.”
“We are open to work with regulators from all around the world to share our best practices, what works, and what doesn’t,” said Zhao.
Binance has been vocal about its willingness to partner with local governments and regulatory bodies, with the cryptocurrency trading platform keen on building its presence in the MENA region.
Changpeng Zhao, founder and CEO of Binance.
“The challenge for any crypto business really is doing that in a manner which is compliant with government,” shared Binance’s MENA director Omar Rahim with Arabian Business.
Within the MENA region, the UAE and Bahrain – owing to their existing regulatory frameworks, sandboxes, and desire to host pioneering financial services – are emerging as potential regional hubs.
Zhao believes that the UAE is a “symbol of embracing technology” due to its pro-business environment, stating that other governments should follow suit and change their outlook on digital transformation.
“I think there is a lack of understanding that causes fear, and this is not the right approach. We should embrace anything with the potential to disrupt. We should invest in anything that can disrupt the current order, and we should encourage that to grow because tech and innovation will happen regardless,” he added.
Governments should take as many opportunities to adopt bitcoin and blockchain as possible, said Changpeng Zhao.
“Don’t be afraid to embrace disruption, it will help countries to grow. It is new tech, and you cannot ignore new technology. This country already understands that and is a symbol of embracing technology.”
Binance has recently faced a spate of challenges, with regulators, from the US and Europe to East Asia, issuing warnings to and about the cryptocurrency trading platform.
Crypto markets, in general, have also been under increasing scrutiny as regulators cite the potential to use crypto exchanges to launder money. Last month, Binance said it would demand stricter background checks on customers to strengthen anti-money laundering efforts.
Despite regulatory pushback, the company is expanding in the region, and across the Atlantic, where its US affiliate is gearing up for an initial public offering within three years, Zhao has said, according to reports from CoinDesk.
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