Changpeng Zhao, CEO of cryptocurrency exchange Binance, has said during a Web3 summit in Hong Kong that "forced cryptocurrency regulation is very bad."
According to him, the only thing worse than the lack of clarity in the laws is the presence of bad restrictive rules.
Zhao has pointed out that there is a "very natural tendency" among regulators to borrow advice from the traditional financial industry and apply it to cryptocurrencies, but digital assets are a very different industry.
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He has added:
"The government’s efforts in shutting down banks, fiat access and putting more restrictions on the traditional financial markets actually push more people towards crypto."
Zhao has also added most departments have no experience in the cryptocurrency market, which aggravates the situation.
The Binance CEO has said:
"Therefore, it is very important to actively engage with regulators. We can't just say, 'Hey, look, this is decentralized. We're nowhere.'"