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Binance CEO Addresses Criticism, Highlights Commitment to Transparency

Binance CEO Changpeng Zhao addresses the firm's controversies, his views on regulation, and the evolving crypto landscape.

Wed, 31 May 2023, 04:32 am UTC

In a recent conversation with Bankles, Changpeng Zhao, the top executive of Binance, shed light on his viewpoint of the crypto universe and his firm's public image. He initiated the conversation by reflecting on the heated debates surrounding Binance. The company has been in the news lately, countering claims made by Forbes, Financial Times, and Reuters regarding allegations of inappropriate usage of funds and supposed connections to China.

Zhao believed that conventional media outlets are biased toward portraying cryptocurrencies negatively. In particular, Binance draws negativity due to its colossal stature, he observed.

In addition, Zhao speculated that criticism may be influenced by his Chinese origin. Despite being born in China, Zhao holds Canadian citizenship. Binance was founded in China but ceased operations there due to regulatory norms, asserting that its Chinese staff members have been reassigned.

Asserting his commitment to transparency amidst the negativity, Zhao indicated that Binance is proactive in sharing proof-of-reserve reports. However, he cautioned against complete transparency, arguing that if Binance were to disclose all of its wallet addresses, it might expose its vendors and partners, thereby risking privacy, security, and competitive balance.

Regarding regulatory compliance, Zhao stated that Binance actively complies with global regulations. He reiterated that scrutiny of Binance is intensified because of its scale.

Furthermore, he insinuated a shift in the crypto world towards cooperation over competition in regulatory matters. He appreciated that other crypto firms like Coinbase and Kraken increasingly collaborate with regulatory bodies. This collective approach, he believes, can help distribute the regulatory burden more evenly, alleviating some pressure off Binance.

Lastly, he divulged that Binance once considered acquiring a bank. However, the need to comply with stringent local regulations, high risk, and low profitability led them to abandon the idea.

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