Cryptocurrency exchanges should be regulated, Mr Zhao said
New York City: The CEO of one of the world’s largest cryptocurrency exchanges has called for more regulation in the industry. Binance chief Changpeng Zhao said he supported moves to bring digital currency exchanges under government supervision and suggested that global bodies like the G20 should consider guidelines for crypto exchanges. He also said that digital currencies are needed because they offer anonymity and can be used as an alternative means of payment or store of value.
Biggest crypto exchange Binance urges new industry rules.
In a blog post on its official website, Binance said that it “would like to see regulations” for the cryptocurrency exchange industry.
The exchange said that regulatory oversight would help protect investors and promote the growth of the crypto ecosystem.
Binance has been hit by cyber-thieves before
Binance has been hit by cyber-thieves before. In March 2019, hackers stole over $40 million worth of cryptocurrency from the exchange. The hackers used phishing to gain access to user accounts and steal funds.
The second hack occurred in May 2019 when hackers gained access to Binance’s hot wallet (a type of savings account). They also stole several hundred thousand dollars’ worth of Ethereum and Bitcoin from the company’s cold wallet (another type of savings account).
The G20 is weighing up how to regulate the cryptocurrency industry
The G20 is a group of 19 countries and the European Union. It accounts for 85% of global GDP and 75% of world trade.
The G20 is also home to an unofficial blockchain task force that has met multiple times since February 2017, with its members looking at how blockchain technology can be used in different industries.
Speaking at a press conference after his meeting with South Korea’s finance minister Kim Dong-yeon on Thursday, French Finance Minister Bruno Le Maire said there were “no doubts” about cryptocurrencies being banned from certain countries like China or Russia but added that they should not be completely prohibited across the globe as this would hurt innovation.
Crypto exchange boss calls for more regulation
Binance CEO Zhao Changpeng said that more regulation is needed to protect traders, the industry and consumers. In an interview with Bloomberg, he said: “If you want to be part of this new era and play in the big leagues then you need to follow regulations.”
Binance is not the only one calling for more regulation. Even though this may seem like a bad thing to some people, it’s actually a positive sign that governments are aware of the need for regulation in order to protect investors. Hopefully we’ll see more countries follow suit soon.