Binance CEO “CZ” Says Crypto Regulation Will Increase Adoption
Binance CEO Changpeng “CZ” Zhao practically attended a fireside chat hosted by HashKey Capital CEO Deng Chao at the Hong Kong Web3 Festival 2023. He discussed topics including the future of centralized finance (CeFi), asset security and mass adoption in crypto and Web3.
CZ said he has visited Hong Kong many times before for business, but was able to attend the first Web3 event. However, he promises to attend the next events in person in Hong Kong.
Binance CEO Thoughts and Insights on CeFi
When asked about his thoughts on security incidents in the CeFi area in recent years and measures to reduce such incidents in the future. He said Binance is taking many measures such as improving infrastructure, proof of reserves and using new technology to protect users’ crypto assets.
Studies have revealed that the majority of people are unable to properly secure even their keys, causing them to lose crypto assets. He claims that CeFi and DeFi both have some minor problems, such as security issues with DeFi wallets.
Furthermore, he answered questions about building trust in CeFi companies, as well as managing shareholders’ trust. The trustless technology in most blockchains builds some trust in users about safety and security.
CZ claims Binance has strong user trust as it is used by most of the crypto community. Self-regulation is important, and even countries, banks and companies have some risk.
Crypto exchange can have an important role in providing user experience to increase Web3 onboarding. While some challenges such as user experience and KYC exist in Web3 compared to Web2. People prefer to use CeFi because of simple features like passwords. Binance keeps web3 security first and has worked continuously to improve the user experience. The exchange also uses local authorities and supplier solutions to increase trust.
Can CeFi and DeFi co-exist?
Binance CEO claims CeFi is not against DeFi. While DeFi and CeFi have some differences, some centralization can coexist in decentralized platforms. Binance is a bridge between both CeFi and DeFi, filling gaps with products and services. “There is no competition, people can have different views on CeFi and DeFi.”
He said it is difficult to predict the trigger that will lead to mass adoption in the next crypto and blockchain wave. The trigger for mass adoption changes over time, citing examples of ICOs in 2017 and NFTs in 2021.
CZ also highlighted the need for regulatory clarity, saying “using enforcement to control crypto is bad.” Regulators need to understand that crypto is different from banks, there are different types of crypto assets. It is crucial for regulators to have a deep understanding, but most do not have crypto experience.
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