Binance CEO Changpeng Zhao isn’t worried about sudden attention from regulators and media scrutiny directed at his company. Instead, he views this as an opportunity for Binance to show its value amidst what he believes is FUD.
During a Twitter Spaces event on Friday, CZ blamed Binance’s critics for trying to make his company look like FTX, a failed cryptocurrency operated by his rival Sam Bankman-Fried, for facing legal issues.
CZ said, “We are a much stronger company today than we were two years ago, I think,” adding that “Binance is way ahead of the game in terms of regulatory compliance.”
Despite the fear, uncertainty, and doubt (FUD), Binance CEO CZ shares his optimism that Binance has only proved its strength by maintaining a large number of users and its significant market presence.
CZ is defending himself and the company against the allegations made by the Securities and Exchange Commission (SEC). On March 27, the U.S. Commodities and Futures Trading Commission sued Binance for breaking U.S. trading and derivatives rules. Binance is under investigation in Canada, Australia, and France for suspected violations of regulations.
According to CZ, Binance is still the world’s largest crypto exchange, but these lawsuits have made a drastic negative change. After the SEC’s lawsuit, the Binance US market saw a dramatic drop of 78% in market share, and overall trading reduced to 52%, according to the data from Coingecko.
Changpeng Zhao said “I think the more decentralized the industry becomes, the better,” and noted that DeFi currently represents around 5% to 10% of CeFi volumes.
CZ believes that more conversations with the U.S. authorities could lead to improvements in the way regulators handle cryptocurrency.
CZ stated that the current situation feels unclear when it comes to crypto regulations and hopes that by working together on this closely, the regulatory landscape for cryptocurrencies can become more clear and constructive.
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