Crypto provides a non-traditional medium for wealth creation in Africa, CZ said
Changpeng Zhao, CEO of the world’s largest crypto exchange Binance, said that regulation designed to complement the growth of the cryptocurrency market will help build trust among consumers and institutions.
In an interview with TechCrunch, CZ stated that local regulators and the crypto industry share the common goal of helping and protecting consumers. However, regulations designed to hinder innovation would delay mass adoption.
Effective regulation protects consumers and stimulates growth, while poorly drafted laws would stifle the industry and protect outdated ineffective processes and institutions, he explained. Framework conditions are needed to prevent abuse and bad actors, CZ added.
In response to the increasing legal scrutiny of Binance in the US, EU and China, CZ said that the exchange is working with regulators from around the world and sharing best practices to improve the overall regulatory environment in the industry:
“While regulators are working to find the most effective way to work with the industry, we are committed to 100% compliance worldwide. The clarification and construction of the first set of standards is crucial for the further growth of the industry, and Binance wants to make a positive contribution.“
Africa offers a unique opportunity for crypto, as it solves problems related to cross-border payments, transfers and currency devaluations, according to the executive. He explained that crypto is a way to create wealth and financial freedom in the midst of poverty in Africa.
CZ pointed out that even today, only 11% of the population in Africa has a bank account. Many are trying to skip the banking stage and access crypto directly from their phones. The continent offers a variety of opportunities for the crypto industry, as people are looking for innovative and non-traditional ways to create wealth.
“Frankly, the potential is endless, and in emerging markets this is even more true. New financial infrastructures, systems and processes will be created that will change lives and create the potential for financial freedom“, concluded the expert.