Insights from Binance CEO CZ: Navigating Increased Regulation and Ensuring Safety in Cryptocurrency Trading

Dareen Cone
Dareen Cone Crypto News
4 Min Read

The situation of Binance has been discussed in the US for a long time. With the news that the company is under closer scrutiny, this situation seems to be getting worse. 

What Happened

If you recall, recent efforts by the SEC and New York regulators recently caused cryptocurrency markets to collapse for days. BUSD will no longer be the third largest stablecoin as the US has banned the creation of more tokens. If only redemptions (burning tokens and returning cash) are allowed, circulation will drop rapidly and approach zero next year. What will Binance do then?


The most important question to ask is: Is Binance safe?

Of course, there is more than one answer to this question. First, from what we’ve been told so far, Binance is extremely safe and isn’t bullying anyone, but the BUSD thing seems a bit more suspect. 

Removal of BUSD pairs from exchanges. Binance, which will gradually reduce pairs, will have to convert BUSD reserves into replacement assets like USDT. Paxos, on the other hand, has stated that it will file a lawsuit against the SEC, although it has stopped printing money in the meantime. The unexpected aggressiveness of US regulators towards staking and stablecoin threatens cryptocurrency markets.

CZ is making a statement!

Binance CEO CZ spoke at the Twitter Space Binance AMA (Ask the CEO anything) event to discuss the current situation. CZ explains the following:

“We need more stablecoins than the US dollar. We will support stablecoins for a number of fiat currencies, including the Singapore dollar and the Japanese yen. Binance has already started to launch the Japanese yen. Once BUSD is out, other USD stablecoins will emerge and Binance will start supporting more USD stablecoins.”

Last year, Circle, the company behind USDC, filed a formal complaint with regulators against the Binance exchange. This is a new development, and CZ was probably alluding to it when he said that our competitors were whining about us and undermining us. Everyone believed that the buyer was FTX directly. As a result, USDC support may not return.

Is Binance a reliable cryptocurrency exchange?

More than $1 billion was withdrawn from the exchange today, and there is a possibility that the US authorities will target the Binance exchange. Although this threat worried investors, CZ seemed relieved. Bloomberg reported that a preliminary investigation is underway against BNB, and recent events at Paxos suggest that this is just the tip of the iceberg. CZ issued the following statement:

“After the Luna and FTX scandals, regulators have taken a much stricter stance. Many traditional banks no longer do business with bitcoin initiatives and are extremely cautious. The loss of Binance’s traditional banking partners could have a negative impact on the industry in the near future.”

Any other content you might be interested in: Explained: What Is A Credit Score, Why Is It Important?

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