Latest Interview with Zhao Changpeng: Being “Under the Microscope” of Regulation, Market is Recovering in Bearish Period

Zhao Changpeng’s Latest Interview: Market Recovery in Bearish Period, Amidst Increased Regulation Scrutiny

Author | Mike Dalton, Cryptoslate

Translated by | BlockingNews

On May 29, Binance CEO Changpeng Zhao (CZ) spoke to Bankless about his thoughts on the current state of the cryptocurrency industry and market.

Dispelling FUD

Recently, there has been controversy surrounding Binance in the crypto market, with Forbes, the Financial Times, and Reuters all reporting on issues such as alleged misuse of funds. CZ addressed this, stating that mainstream Western media tends to report negatively on cryptocurrency, and that Binance, due to its large size, is especially prone to Fear, Uncertainty, and Doubt (FUD).

“If you write a negative article about a small exchange, no one cares. But if you put Binance in the title and hope it’s negative, people will click on it more.” CZ explained.

Additionally, CZ revealed that he has been “racially” targeted by Western media attacks. He explained that although he was born in China, he is a Canadian citizen, and although Binance was originally founded in China, it no longer operates there due to regulatory requirements, and the Chinese employees have been relocated.

Despite the FUD, CZ stated that Binance’s goal is to be “as transparent as possible” and has even provided reserve audit reports. However, CZ admitted that transparency “has its limits”, and if Binance were to publicly disclose all wallet addresses, it would expose supplier and partner information, compromising privacy and security and affecting competition.

Global Regulatory Frameworks

Regarding regulatory frameworks, CZ stated that Binance has always been actively involved in global regulation, but due to its large size, regulatory bodies tend to put it “under a microscope”. In terms of regulation, although the crypto industry is increasingly working with regulators (such as crypto companies like Coinbase and Kraken working with regulatory bodies), the industry’s competitiveness is decreasing. CZ further stated that the crypto regulations being implemented in the Middle East and Europe are promising, and he previously revealed that Binance’s business in the Middle East and North Africa (MENA) region is growing.

Additionally, Binance had considered acquiring a bank, but found that it would require compliance with local regulations on a large scale, and that the costs and risks associated with banks are high, while profits are often low.

Current State of the Cryptocurrency Market

Regarding the current state of the cryptocurrency industry, Zhao Changpeng stated that the market is recovering from the bear market of 2022. However, investors have mixed feelings as no one knows what will drive the future “explosive growth”:

“What will drive the next cycle? Everyone is looking for it now, but no one can be sure, and this may be why so many people are rushing into meme coins. But at least, this situation shows that there is money in the market, just waiting to be deployed.”

Zhao Changpeng specifically stated that his view of a positive market trend may be wrong, and people who invest in a bull market should only invest what they can afford to lose, rather than seeking overhyped investments. Finally, Zhao Changpeng revealed that he suffered a failure when he first invested in stocks and cryptocurrencies, and “learned this lesson in a painful way.”

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