One of the perks of the cryptocurrency industry is the absence of a traditional institution's control. This ensured that the ecosystem was free from external influence and that operations were fluid and ceaseless, as decided by the investors and holders of diverse tokens. Over time, there has been controversy around this peculiar feature of the cryptocurrency.
The debate has gone back and forth. Interestingly, recent events have seen huge crypto influencers express their views about the absence of regulations within the cryptocurrency industry. Last week, Bitcoin and Ethereum enjoyed a small rise, which would have served as a glitter of hope for investors trying to predict what the foreseeable future seems like for cryptocurrency considering the market's unflinching, jawbreaking drop in value. However, the FTX exchange crash has dragged the market's bullish startles back into a pool of red.
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Changpen Zhao, the CEO of Binance, sees the need for regulations
Influential and arguably the most popular cryptocurrency exchange Binance's Chief Executive Changpen Zhao requested for new but fixed and explicit regulations that will guide the operations of the industry due to the recent devastating and discouraging events in the industry. He said, "We're in a new industry; we've seen in the past week that things go crazy in the industry." He mentioned this in a meeting of G20 leaders at the summit in Bali.
He continued, "We do need some regulations; we do need to do this properly; we do need to do this in a stable way." His comments emerge as diverse crypto industry peers and investors draft procedures to combat the fall of rival exchange Sam Bankman-Fried's FTX. On Friday, FTX would send the entire industry into a frenzy as it declared bankruptcy after a turbulent week that saw a flood of customers withdraw assets and Binance abandon a rescue bid.
"I believe the industry as a whole has a responsibility to protect consumers and everyone."So it's not just regulators. "Regulators have a role, but it's not 100% their responsibility," Changpen said. During the weekend, Zhao made a post on Twitter, stating that Binance had halted receiving deposits of FTX's FTT token on its platforms and imploring other exchanges to act in the same manner.1t
What do you think about Zhao's suggestion? Let us hear your thoughts in the comment section.
