Binance CEO Changpeng Zhao (CZ) has called for governments worldwide to regulate rather than oppose cryptocurrency adoption during a recent Binance gathering in Athens, Greece. Meanwhile, Mizuho Securities analyst Dan Dolev controversially declared that "crypto is dead" following the FTX collapse.
CZ’s Key Messages to Regulators
"Don’t Fight Crypto—Regulate It"
CZ emphasized that adoption is inevitable, urging governments to establish clear frameworks:
"It’s better to regulate the industry than to try to fight it. Most governments now understand that adoption will happen regardless."
He predicted smaller nations—particularly those without sovereign currencies—would lead in adding crypto to national reserves.
Industry Health and 2023 Recovery
Despite 2022’s market turmoil (e.g., Terra/LUNA crash, FTX bankruptcy), CZ asserted the ecosystem is now stronger and healthier:
- Binance’s Web3 Recovery Initiative: Launched a $2B BUSD fund to support distressed projects.
- Focus on Sustainability: "We aim for long-term growth, not short-term profits."
FTX Fallout: "A Ponzi Scheme"
CZ likened FTX to Bernie Madoff’s fraud, criticizing its deceptive operations:
"FTX lied to everyone—it was a Ponzi. But one bad actor doesn’t tarnish the entire industry."
Global Regulatory Response:
G20 leaders, including President Biden, pledged to strengthen crypto oversight post-FTX.
Analyst’s Contrarian View: "Crypto Is Dead"
Dan Dolev (Mizuho) argued FTX’s collapse signals systemic failure:
- Coinbase Stock "Worthless": Dolev advised against investing, citing "minimal market gains" and eroded trust.
- Sector-Wide Damage: FTX’s bankruptcy exposed deeper liquidity and solvency risks across exchanges.
👉 How Crypto Exchanges Can Rebuild Trust
FAQs
Q: Will Binance’s recovery fund help the market?
A: Yes—it provides liquidity to viable projects impacted by the credit crunch.
Q: Is crypto really "dead"?
A: No. While FTX’s fraud was damaging, blockchain innovation continues (e.g., DeFi, institutional adoption).
Q: How can governments regulate effectively?
A: By focusing on transparency (e.g., proof-of-reserves) and investor protections.