At the Token2049 event in Dubai, Binance founder Changpeng Zhao discussed regulatory hurdles faced by crypto exchanges, notably local demands from regulators. Emphasizing the difficulties of replicating infrastructure for compliance across multiple regions, he praised the UAE as a safe, pro-crypto environment. Additionally, Arthur Hayes hinted at Bitcoin possibly skyrocketing to $1 million.
In a notable public appearance, Binance’s founder, Changpeng Zhao, known as CZ, took the stage during the Binance Fireside Chat at the Token2049 event in Dubai on Wednesday. He opened up about the hurdles his cryptocurrency exchange faces with various governments and regulatory bodies around the globe. Moderated by Raoul Pal, CEO and co-founder of RealVision, the discussion swiftly turned to how CZ interacts with these various regulatory agencies.
CZ highlighted a significant challenge the exchange encounters: the insistence of some regulators on localised solutions. “Many regulators still want to regulate everything locally; they require a local custody wallet solution, a local order book, a local team, etc.,” he noted. He elaborated on the complexities involved, stating that replicating their infrastructure multiple times for each jurisdiction could severely stretch their resources. “Setting up secure custody solutions for billions in crypto takes vast amounts of money and expertise. If it’s needed 200 times, we simply don’t have the manpower,” he explained.
Turning to the host country, CZ expressed gratitude for the regulatory environment in the United Arab Emirates (UAE), calling it very pro-crypto and pro-business. He reminisced about his first visit four years ago, conducted on a friend’s advice. What began as a three-week vacation quickly crystallised into a future vision. “People here are very pro-business and pro-crypto; the ministers really understand the landscape. They are smart and sophisticated,” CZ pointed out.
He further emphasised the security aspect of the UAE, contradicting some of the negative narratives perpetuated by Western media regarding the Middle East. “UAE is one of the safest places on earth, despite what some portray. It’s a hub for innovation and investment in the crypto space,” he said, reaffirming his belief in the region’s potential for fostering business growth in the burgeoning sector.
Such reflections are crucial, especially as the global regulatory landscape in cryptocurrency continues to evolve and, in some cases, complicate operations for exchanges like Binance. The insights shared by CZ at Token2049 reflect wider industry sentiments and the ongoing dialogue between crypto firms and regulatory authorities.
In related news, fellow speaker Arthur Hayes of BitMEX also made waves at TOKEN2049, predicting a dramatic future jump for Bitcoin, estimating it could soar up to $1 million.
