Binance CZ Admits That BNB Chain Needs More Improvements

In a recent Ask-Me-Anything (AMA) session, Binance CEO Changpeng Zhao, commonly known as CZ, shared valuable insights into various aspects of the crypto world, including DeFi, regulation, and Binance’s global reach. CZ began by talking about the recent Uniswap decision case, saying that it had sparked enthusiasm in the crypto community.

CZ Talks About DeFi And Regulatory Issues

He expressed his belief that DeFi is the future, asserting that it could grow to be five to ten times the size of centralized finance (CeFi). As for the current state of the crypto market, CZ acknowledged the difficulty in pinpointing which stage of the bear market we are in.

However, he pointed out encouraging signs such as regulators in countries like Japan, Hong Kong, and Dubai becoming increasingly accepting of cryptocurrencies. These shifts in regulatory attitudes hint at the growing legitimacy and adoption of digital assets.

Regarding Binance’s regulatory relations across the globe, CZ detailed that Binance has obtained three different registrations in various markets. Each market, he explained, has slightly different levels of development and regulatory oversight. Notably, Dubai has established the Virtual Assets Regulatory Authority, to oversee cryptocurrencies.

While engaging with Dubai regulators requires substantial effort, the result is a thorough and detailed regulatory framework. In Bahrain, where the central bank oversees crypto regulation, collaboration with local banks streamlined the process. Abu Dhabi, on the other hand, granted Binance custody or asset management licenses, contributing to the exchange’s extensive portfolio of 17-18 licenses worldwide.

CZ emphasized that all three regions—Dubai, Bahrain, and Abu Dhabi—are crypto-friendly, progressive, thorough, and responsive in their regulatory approaches. The CEO also shared his conviction that every country needs Bitcoin and cryptocurrency, though the urgency varies.

In less developed countries with limited access to traditional financial services and low mobile phone adoption rates, the role of cryptocurrencies as tools for financial inclusion becomes even more critical. CZ emphasized blockchain technology’s ability to revolutionize these locations by giving locals access to finance via their smartphones and the Internet.

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CZ Admits BNB Chain Needs More Development

CZ recognized that there is an opportunity for development within the ecosystem while addressing the BNB Chain. He stated that while he does not individually plan the improvements, he sees himself as a member of the larger BNB Chain ecosystem. His major concentration remains on Binance.com, the trading platform’s centerpiece.

Despite this, CZ emphasized Binance’s strong support for projects within the BNB Chain ecosystem. This support encompasses investments, facilitating connections, and even considering listings on Binance.com. One significant development within the BNB Chain that CZ highlighted is the introduction of Layer 2 solutions. These solutions aim to further reduce transaction fees and increase network capacity, enhancing the overall user experience.

While talking about BNB Chain’s development, CZ addressed the Greenfield Chain which is a completely new Chain that’s doing storage and also enabling internet-based applications.

In response to a question about Binance’s activities regarding quant trading against its users, CZ unequivocally stated that such practices have never occurred at Binance. He emphasized that Binance provides extensive data transparency compared to many other companies.

CZ Addresses The US Political Divide Regarding Crypto

CZ addressed the political divide within the US regarding cryptocurrency regulation. CZ acknowledged the complexity of the US regulatory landscape, citing his limited understanding due to limited time spent in the country.

He spoke about the importance of more communication and transparency to bridge the divide between crypto-friendly Republicans and Democrats advocating for stronger regulation. Despite Binance’s transparency, CZ noted the current lack of regulatory certainty in the United States, which has resulted in enforcement proceedings against exchanges such as Binance.

CZ further acknowledged the unpredictability of short-term market trends. However, he remains optimistic about the crypto space’s long-term direction, anticipating additional use cases, value, and more worldwide adoption. CZ observed a growing interest in crypto in less developed countries, where Binance’s efforts to promote financial inclusion are gaining traction.

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