Binance CEO CZ Talks About Cryptocurrency Regulations!

world’s largest cryptocurrency Changpeng Zhao, CEO of exchange Binance, spoke about the recently enacted stablecoin regulations in Hong Kong.

Hong Kong has announced that it will require licenses from stablecoin issuers and will not allow algorithmic stablecoins in addition. Algorithmic stablecoins became notorious after the collapse of one such coin, the Terra ecosystem stablecoin UST.

However, other algorithmic stablecoins include Justin Sun’s USDD and Charles Hoskinson’s DJED coin.

Binance CEO CZ Announces Support for Stablecoin Regulations

CZ announced its support for the new regulations in Hong Kong:

“New positive regulatory news comes from the Hong Kong Monetary Authority (HKMA), the Hong Kong Monetary Authority.

We are very proud to see Binance’s recommendations reflected in the stablecoin consultation results released today.”

In addition, CZ expressed the scope of these regulations as follows:

“Adopting a risk-based approach to deciding which stablecoins are covered, aiming to reduce risk to monetary and financial systems, thus starting with fiat-backed.

A more specific scope for regulated activities, specifically wallets, including management, issuance, stabilization arrangements, and access and asset management.

Introduce an alternative approach to local corporatisation and subject it to further evaluation to implement regulatory and supervisory requirements such as mitigation measures.

1:1 coverage and equal repayment requirements, which we fully support.”

CZ also stated that these rules are suitable for BUSD:

“BUSD is pegged to USD and can be used for a 1:1 redemption.

Co-issued with Paxos and certified by NYDFS.

We are already seeing many benefits and uses for stablecoins:

Cross-border payments, protection against inflation and even aid payments.

The regulation will accelerate adoption as well as bring much-needed clarity to issuers, users and service providers.”

*Not investment advice.