Changpeng Zhao, CEO of cryptocurrency exchange Binance, revealed on Twitter that his company is responding to an advisory request by the UK Treasury regarding the future regulation of crypto assets.
Binance CEO CZ Says He Is Satisfied With British Officials Consulting Them
In a thread on Tuesday, Zhao said it's "always good to see policymakers openly asking for opinions and suggestions," and shared some key points in Binance's response.
He said he believes Binance's "same risk, same regulatory action" principle is the right approach to regulating emerging technologies as it captures the intricacies and benefits of new innovations as well as their potential risks.
He also noted that regulations must achieve policy objectives while taking into account industry nuances, and Binance is happy to assist with this.
Zhao stressed the need for a clear definition of decentralized finance (DeFi), a rapidly growing sector of the crypto industry that provides a variety of financial services without intermediaries.
He said that listing and delisting of crypto assets should be done by exchanges, and exchanges should be held accountable for providing accurate information and adequate due diligence to consumers based on clear lighting rules.
He also stated that Binance supports the creation of a Crypto Market Abuse Regime (MAR) to mitigate crypto-specific risks and challenges, and that greater market surveillance and regulation overall will help mitigate malicious intent.
Zhao's tweets came amid growing regulatory scrutiny of the crypto industry in the UK and elsewhere.
*Not investment advice.
