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Binance CEO Changpeng Zhao has said that countries are better off regulating crypto instead of fighting it, claiming that crypto adoption does not matter.
During a Binance event in Athens, Greece on Friday, CZ noted that crypto regulation has once again become a hot topic amid the recent fallout from cryptocurrency exchange FTX. He advised countries to propose regulations instead of opposing the crypto sector.
Zhao said, “I think most governments now understand that adoption will happen regardless. It’s better to regulate the industry than try to fight against it.”
As mentioned, FTX announced That it filed for Chapter 11 bankruptcy in Delaware a few weeks ago. the exchange lent as much $10 billion The value of client assets for making risky bets by its affiliated trading firm, Alameda Research, a move that has drawn the ire of FTX users.
An estimated 1 million creditors are facing billions of dollars in losses. Furthermore, the FTX infection has been spreading over the past few weeks, most recently Influencing crypto exchange Liquid, BlockFi, Genesis and Gemini,
Meanwhile, CZ compared the collapse of FTX to the 2008 financial crisis, but claimed that the industry would recover.
“[This year]was a very bad year, a lot has happened in the last two months. I think now we see that the industry is healthy… Just because FTX happened doesn’t mean every other business is bad. is,” he said.
The CEO also remained steadfast on bitcoin adoption. When asked if he thinks countries may start adding cryptocurrencies like bitcoin to their reserves in the future, Zhao said he hopes countries will start, especially those that do not have their own currency.
Binance’s CZ is not alone in his bullish outlook on the crypto industry. as informed ofTop Wall Street strategist Thomas Lee, who is also the co-founder of Fundstrat Global Advisors, believes crypto will re-emerge in 2022, despite its weak performance.
In a recent interview with CNBC, Lee said that the current crypto bear market is nothing new. He noted that the crypto industry experienced a similar downturn in 2018 when bitcoin lost more than 70% of its value from its all-time high.
“It’s been a terrible year for crypto. No one made money in crypto in 2022,” he said. “But it’s not that different from 2018. If we look at that crypto winter, when bitcoin went from $17,000 to almost $1,200, it was a time when some of the best projects were built.”
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