Binance CEO CZ commented on the article on cryptocurrency regulations prepared by IMF officials Bo Li and Nobuyasu Sugimoto.
Binance CZ talks about IMF’s 5-point crypto regulation plan
The International Monetary Fund (IMF) recently published a 5-point article highlighting the importance of cryptocurrency regulations. The article by IMF officials Bo Li and Nobuyasu Sugimoto specifically addresses the role of regulators in crypto crises. Commenting on the article today, CZ said that the IMF’s cryptocurrency plan is highly beneficial and “good” for their crypto and related businesses. According to CZ, the most effective method of user protection will be risk-based regulations implemented worldwide. The CEO of Binance mentions the potential crypto threats facing direct bans in certain jurisdictions:
I’ve said this before and I’ll say it again: The best form of user protection is globally consistent, risk-based regulation. Direct bans will result in users working in the shadows at their own risk and without any safety net.
CZ then made a series of articles on the regulation of cryptocurrency exchanges and platforms:
2) Crypto exchanges must be licensed, registered and authorized. Licensing and authorization criteria should be well defined.
3) Organizations performing multiple functions should be subject to additional regulatory, transparency and/or disclosure requirements.
What does the IMF recommend about cryptocurrency regulations?
As CZ emphasized, the IMF wants cryptocurrency exchanges to be licensed, registered and authorized first. This includes businesses that provide services such as warehousing, transfers, clearing, settlement and custody and are subject to regulations comparable to those controlling service providers in the traditional financial sector. Demands that clients’ assets be kept separate from those of the company and that the responsible authority be fully clarified.
According to CZ, the cryptocurrency market seeks robust, comprehensive and globally consistent crypto regulations so that it can accommodate its cross-border nature. He also underlines that for a global strategy to be successful, the industry must evolve with the changing building blocks.
Meanwhile, cryptocoin.com As we reported, Binance is on the agenda with its transactions with the cryptocurrency exchange seized by the US Department of Justice.
Regulation on lending platforms, stablecoins and more
The article also mentioned that organizations performing various tasks in the crypto market should be subject to regulations. One consideration is that it is recommended that stablecoins should be subject to strict prudent standards by the issuing company. Stablecoins, which are the backbone of the market, can threaten the stability of monetary and financial systems if not subject to proper scrutiny and regulation. It is proposed to introduce regulations in this area comparable to those prevalent in the banking sector.
Finally, CZ emphasizes that user protection and market integrity are better when politicians and regulators expand the scope of permitted activities. This inference can be observed in many different industries, such as traditional finance, healthcare, pharmaceuticals, internet and content, among others.
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