Changpeng “CZ” Zhao launched Binance in 2017 and according to some sources, the company grew into the largest cryptocurrency exchange in the world in 180 days.,
NS wall street journal It was recently reported that Binance had $76 billion in daily transactions, more than the total volume of its four nearest rivals.
According to the WSJ, in the first half of 2021, Binance garnered 151 million clicks from Africa and the Middle East, and 11 million from Nigeria. These numbers highlight the general activity of crypto trading in Africa, where $105.6 billion worth of cryptocurrencies transaction was done From July 2020 to June 2021. According to Chainalysis,
Despite growing more than 1,200% in value terms, Africa is still only . is responsible for 2% of the global value of crypto transacted in this period. With cryptocurrency, blockchain and decentralized finance gaining ground on the continent, Binance wants to be a leader in driving these activities.,
HoweverFor this to happen, the company will need to consider the regulatory challenges it may face on the continent, where crypto activities are forbidden In the two most prominent crypto-heavy countries, Nigeria and Kenya,
It’s Already Taking Several Hits From Regulators US, China, UK, Japan, Malaysia, Thailand and the European Union, which are now concerned about its uncontrolled and unstable development in recent years.
In this interview with Nerdshala, Zhao discusses the company’s stance on crypto use and adoption, Binance activities and regulation in Africa.,
(This transcript has been edited for clarity and length.)
Nerdshala: Crypto is an industry that many governments are trying to regulate. What do you have to do? Should crypto be regulated?
Zhao: Regulation is essential to the crypto industry and will go a long way toward building trust with consumers and institutions interested in the space, At the end, realizing crypto mass adoption requires proper regulation, and we believe to facilitate it in a healthy way full activity Collaborating with local regulators and leading the industry to a common destination: benefiting and protecting users,
We think it’s great to have regulators For Get up to 10%, 20%, 80%, 99% [crypto] Adoption. However, Its right now It is important for regulation to complement rather than hinder the growth of crypto. completeEffective regulations protect consumers by encouraging growth and innovation, while Sick Formulated regulatory policy prevents development and protects dated, ineffective processes and institutions,
As the largest exchange globally, why does Binance have so many regulatory issues in the US, Europe, and China? And what steps is the company taking to address them?
I believe Every Cryptocurrency Exchange Is Working close range With regulators around the world. As industry leaders, many people watch the industry and watch Binance. we don’t take it Lightly, As we have the opportunity to lead by example and partner with regulators to further our shared objectives.
We are the largest crypto exchange because users trust us. We earned that trust through a number of decisions and actions that protected users. We want to share our best practices with industry and regulators around the world. we believe This will help in shaping a healthy industry.
As part of efforts to meet compliance with all local regulation guidelines, we have recently launched new products – such as those to support Shyft Network’s Veriscope FATF Travel Rules compliance and our Tax Reporting Tools API so that users can Quickly Meet your personal tax obligations.
We have also reviewed our existing services, including updating futures leverage for new accounts and restricting access to a number of Markets and introducing a mandatory KYC [know your customer] Need across the stage, We have also recently hired several top tier talent with a strong background in compliance.
As an example in leadership, we recently began to make a push for industry players to operate longer, In addition to this For standard KYC/AML [anti-money laundering] processes. We are pushing for a longer unlock schedule for Founder Tokens ranging from 2-4 years to 8-10 years. This is something no regulator has asked for, but we believe This will help the industry to become healthier. We are always looking for ways to protect users.
Would you say that the governments are doing the right thing on this? And are they knowledgeable about the budding industry and how to maximize its profits?
There is no absolute right or wrong here. It’s a matter of calibration and balance. Crypto and even regulation of crypto are such new concepts, and many governments are trying to get more clarity about the space.
Regulators share the same mission with us – to protect consumers while encouraging innovation. As regulators work to find the most effective way to engage with the industry, we are committed for 100% compliance globally, and all of our teams are working relentlessly to achieve,
The adoption and development of crypto has many similarities with CAR. When the car was first invented, there were no traffic laws, traffic lights, or even safety belts. Laws and Guidelines were developed On the way when cars were running on the road. It is the frameworks and laws that we follow today that allow this powerful technology used In encompassing manner And safely,
Crypto is similar because it can be accessible to everyone, but frameworks are necessary To prevent abuse and bad actors. It is important to articulate and create the first set of standards for the continued development of the industry. And Binance wants to be a positive contributor.
Why is Binance bullish on Africa, where crypto regulations are becoming increasingly worrying?
The African continent has some unique opportunities for cryptocurrency adoption and growth and therefore, we have always been bullish in Africa., Crypto is solving the issues of cross-border payments and remittances (sending money to and out of Africa), currency devaluation, etc.,
Many African countries are suffering from high unemployment rates, and crypto and blockchain have provided innovative job opportunities for a young and brilliant continent, bringing Africans closer to financial freedom.,
Even from the first day Binance launched, we had users from Africa, and they were really Relatively Active. Therefore, I feel It was in early 2018 that I visited Uganda, Togo, Nigeria – and Ethiopia at the same time. So, I did a little tour of Africa right now To learn a little more about the market, and shortly thereafter, we opened Binance Uganda, our first legal gateway.,
What is particularly interesting about African usage is that the number of people with bank accounts is quite small due to their lack of access to traditional financial services., However, This is why crypto is so attractive.
Yes, it is tempting, and that is probably why African central banks have targeted crypto users in recent months and barred banks from facilitating transactions., What happens when they start flocking to Binance like the US, China, and other countries?
Binance welcomes regulation and takes a collaborative approach working with regulators and governments in navigating this emerging industry, and we take our compliance obligations very seriously. seriously, it is us Active Keeping abreast of changing policies, rules and laws in this area.
Therefore, Binance is ready to assist the regulators and find the optimal way to establish a fair playing field – vital for consumer protection. all of we, we have grown up with speed As an organization there are further procedures and protocol updates that we are still working on at the request of the regulators,
Do you think that crypto adoption and growth will slow down if Binance and other crypto platforms are subject to government regulations around the world?
No I don’t. Smart regulation encourages innovation and helps keep users safe. It is also important to understand that regulation and innovation are not mutually exclusive. Crypto users deserve secure access to emerging technologies and practices, including NFTs, stablecoins, staking, yield-farming and more.
We have our recently released 10 . I talked about it Fundamental rights for crypto users. Crypto regulation is inevitable. But users are entitled to share their voices on how the industry should evolve with the blockchain platform of their choice.
What do you think is driving crypto adoption in Africa?
I feel It is always a combination of several things. Africa is a unique continent with unique challenges. For example, many African countries are plagued With constant currency devaluation, and therefore users are more likely to use crypto and stable coins as a hedge against devaluation and as a store of value,
Making payments – be it remittances, cross-border transfers or settlements – is also very difficult across the country, and crypto makes it simple.,
Many Africans seek cryptocurrencies for wealth creation and financial freedom. Like in Southeast Asia and Latin America, millions of people live below the poverty line. So it’s only natural that more people look for innovative, unconventional ways to make money.,
Some reports state that only 11% of the population in Africa has bank accounts. Many non-banking banks are leaving banks straight To do crypto, using mobile phone as your bank.
Talking about the numbers, a recent article by WSJ states that Nigeria received 11 million clicks on Binance in the first half of 2021. Is this the number of Binance users on the continent?
The Wall Street Journal cited data provided by third parties as the basis for speculation, as they do not have access to our systems nor any user information. We cannot comment on speculative analysis done by outside third parties.
As more Africans use P2P than ever before, how is Binance ensuring that users in Africa are safely trading cryptocurrencies on its platform?
Our focus in Africa has been on these as we are committed to ensuring that Africans are well educated and protected.
User safety and security are paramount, especially with Binance P2P. As of August, we had provided free crypto classes to over 400,000 Africans on topics ranging from user security to pursuing a career in blockchain.,
The team recently implemented new risk management measures including a crypto escrow service. We have recently expanded our global KYC requirements to enhance user security and Implement new P2P features to prevent bad actors from exploiting the system,
What are the prospects in cryptocurrencies and blockchain that will be transformative for emerging economies like Africa,
with honestyThe possibilities are endless, and in emerging economies, this is even more true. New financial infrastructure, systems and processes are being created – transforming lives and creating the potential for financial freedom,
Me too personally See the immense potential in recent innovations walker Mainstream – GameFi, Sports Fan Token, NFT, etc. I feel it can be very transformative,