The founder of the Binance exchange, Changpeng Zhao, said that no amount of regulatory action will be able to destroy Bitcoin and the blockchain.
It is much more effective to work out a clear regulation of cryptocurrencies. Changpeng Zhao expressed his opinion at the virtual conference Consensus 2021.
He believes that the fight against cryptocurrencies resembles the situation when the trading giant Amazon started to work on the Internet, and many did not want to accept his business model. Even by joining together, regulators will not be able to "erase" the technology that underlies Bitcoin, so Zhao suggested that they start using it. According to Zhao, cryptocurrencies were not created to "kill" traditional finance and government currencies. This is just a new tool for expanding financial freedom around the world.
"I don't think anyone can shut it down now, given that this technology, this concept, is in 500 million people's heads. You can't erase that,"said the head of Binance.
His statement is due to the fact that regulators began to show increased attention to Binance. After the launch of trading in tokenized Tesla shares on Binance, the German Federal Financial Supervision Agency (BaFin) began to suspect the exchange of violating securities laws. According to media reports, the Department of Justice and the Internal Revenue Service of the United States also launched an investigation into Binance, becoming interested in the activities of the exchange. Zhao commented on the situation, saying that the authorities' doubts about the legality of Binance's work stem from a lack of regulatory clarity.
"We are not going against governments. There are times where the regulators or rules are not super clear. They are still being established in most parts of the world so there are some gray areas. But [we've] just got to experiment and work together and figure that out,"Zhao said.
When asked what would be most in demand: decentralized finance (DeFi) or non-fungible tokens (NFT), Zhao was unable to provide a clear answer. However, Binance intends to continue experimenting with the latest technologies. Zhao added that when it comes to "big projects" like Binance Smart Chain, little depends on his opinion. According to Zhao, "The Binance Smart Chain came out of nowhere, it was not his idea."
His clarification followed in connection with the increase in the number of hacks of DeFi protocols created on the basis of this blockchain. Therefore, many users criticized Zhao himself and demanded that he and Binance be held liable for the losses.
"Binance Smart Chain is an independent blockchain, [and] we don't have control over it," Zhao said. "The projects on there are running very independently. If I talk to them, they will talk to me. But I don't talk to them at all,"Zhao explained.
Earlier, the CEO of Binance said that despite the signs of a "bubble" in many DeFi projects, this industry has every chance of successful development.