Binance CEO Changpeng Zhao (CZ) took to Twitter to share his thoughts on crypto regulation moving forward.
Zhao made remarks in support of one. topic Published by the IMF’s Deputy Managing Director, Bo Li, and the Fund’s Deputy Chief of Financial Supervision and Regulation, Nobuyasu Sugimoto, regarding the need for regulation to protect the volatile crypto industry.
Zhao supports the IMF’s stance on crypto regulation.
According to Zhao, the most effective way to protect crypto users from the industry’s irregularities was to implement “globally consistent, risk-based regulation.”
In his Twitter thread, the Binance CEO questioned the efficacy of authorities issuing outright bans against crypto, claiming that such measures would only force users into the shadows, where they have little protection. Will get and will not get any support.
CZ shared several highlights from IMF blog post To which he agreed, including calling for a stronger, broader, and uniform approach to crypto regulation. He also insisted that regulators must adapt to the dynamic nature of the crypto landscape to be effective.
Binance’s CEO also agreed with the IMF that digital asset service providers should be licensed, registered, and authorized. Additionally, he was of the opinion that the authorities should clearly define the licensing and authorization criteria for digital assets and companies trading in them.
Stablecoins require special regulatory attention.
Lee and Sugimoto’s article comes at a time when the crypto sector is grappling with it. After termination of FTX And the increased scrutiny that came with it.
Both authors pay special attention to stablecoins, stating that their increasing recognition outside the crypto community and their increasing popularity as a store of value means that they may soon compromise global monetary and financial stability. have the ability
Because of their growing influence in financial circles, Lee and Sugimoto argue that stablecoins need a strict, bank-style regulatory model to govern them.
His sentiments were echoed by CZ, who said that stablecoins now had many use cases where they played a traditional financial role as a store of value and thus, needed to be better regulated. Is.
Targeted bans will work better than mass bans.
Lee and Sugimoto condemned it. Sanctions were imposed against crypto. In a number of jurisdictions, particularly in sub-Saharan Africa. In their opinion, broad sanctions were overkill, and authorities might be better off with targeted sanctions, especially where regulatory capacity is available.
The authors used Japan and the United Kingdom, which have successfully restricted the use of certain crypto derivatives, and Spain and Singapore, where Crypto ads are restricted.As examples of successful policy outcomes of targeted sanctions.
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