While Changpeng Zhao applauded the proposed crypto regulatory framework, several stakeholders have criticized it for being outdated. Last week, he praised the EU legislation on Markets in Crypto Assets (MiCA) by saying it would become a standard worldwide.
Changpeng Zhao, the CEO of Binance, applauded the crypto regulatory framework proposed by the White House, calling it a government initiative.
Zhao thinks adequate regulations will promote the core values of cryptocurrencies and protect users while fostering technological innovation.
He recently stated on Twitter that he was happy to see the United States moving toward a proposed crypto framework. He argued that doing it right would help protect consumers and markets while encouraging responsible innovation.
The Chinese-Canadian business executive praised the proposal amid general criticism from the crypto community, who described it as outdated and unbalanced.
The founder of Binance also said the global approach to crypto regulations by the United States helped ensure consistent and clear laws. He commented that this would allow changing the current regulatory regime, in which each state seems to set its rules.
Regarding the framework, Zhao pointed out that it includes specific provisions for cooperation with other countries. In addition, he mentioned the active collaboration with global standardizers and the private sector, mainly on the application front.
Binance Aims to Further Its Cooperation with Regulators
Zhao also stated that Binance expects to work with regulators to establish a global regulatory and compliance framework. He explained that the cryptocurrency exchange had launched law enforcement training worldwide and has worked to comply with regional regulations.
However, the commendation by Zhao might be a way to include Binance in the good books of global regulators. That is the second time since last week that the programmer has publicly praised regulators. While in Paris, he said the EU legislation on Markets in Crypto Assets (MiCA) would become a standard worldwide.
Crypto Stakeholders Criticize the White House Crypto Regulatory Framework
The report on cryptocurrencies from the White House has dealt with criticism from stakeholders. These include The Blockchain Association, the Crypto Council for Innovation, and lawmakers like Congressman Patrick McHenry.
Kristin Smith, the executive director of The Blockchain Association, considers the report a missed opportunity for the country. He said it would prevent them from becoming a leading regulator as it mainly focuses on the risks of crypto assets.
Sheila Warren, the CEO of the Crypto Council for Innovation, views it as outdated. She agrees with many other community members that crypto assets should provide privacy and freedom.
Changpeng Zhao Considers that Banks Should Adopt Cryptocurrencies to Survive
Last week, Changpeng Zhao explained why he thought the banking system needed to adopt cryptocurrencies. The executive said traditional financial institutions could survive by adopting crypto assets as a payment and savings method.
Zhao thinks this will allow banks to offer more financial products while remaining centralized, which they would not like to lose. In addition, he considers that it is necessary to educate users, legislators, and regulators about cryptocurrencies and Web3.
Cryptocurrencies have become a crucial part of the global economy, which renowned experts like Changpeng Zhao know well. However, the CEO of Binance considers they require clearly-stated regulations, going against the freedom and privacy principles of blockchain technology.
By Alexander Salazar