Binance CEO Changpeng Zhao (CZ) praised an article on cryptocurrency regulation published by the International Monetary Fund (IMF), indicating his agreement with urgent regulations for the market.
Binance operates in several countries and has strengthened its relationships with governments and regulators in recent months.
That is, with new regulations, the largest cryptocurrency brokerage in daily trading volume is alert to the debates. In Brazil, for example, Binance praised the passage of the cryptocurrency law, passed in December 2022.
Binance’s CEO agrees with the IMF’s proposed regulation of cryptocurrencies
In a publication on his Twitter, CZ agreed with the thoughts of two IMF executives, Nobuyasu Sugimoto and Bo Li.
In the piece signed by both executives at IMF News, they call for swift regulatory clarity from global regulators. One of the points worthy of attention is cryptocurrency brokers, especially after the fall of the FTX.
In addition, they are asking for extra care with stablecoins, a cryptocurrency niche that witnessed the fall of the Earth ecosystem (LUNA) in 2022.
According to IMF executives, the problems should be fixed as soon as possible, even if the traditional financial market has not felt any side effects.
Last Tuesday (24), Binance’s CEO agreed with the text on regulation by the IMF executives and stated that users will be safer with clear rules.
“Good approach to crypto regulation by Bo Li & Nobuyasu Sugimoto in
IMF news. “Stronger financial regulation and oversight and the development of global standards can help address many concerns about crypto assets.” Clarity in the regulations is needed as soon as possible.
I’ve said it before and I’ll say it again: the best form of user protection is globally consistent, risk-based regulation. Outright bans will only encourage users to operate in the shadows, at their own risk and without any safety net.”
Good Approach to Crypto Regulations by Bo Li & Nobuyasu Sugimoto op @IMFNews.
“Stronger financial regulation and supervision, and the development of global standards, can help address many concerns about crypto assets.”
Clarity in the regulations is needed as soon as possible. Thoughts🧵 https://t.co/BBVqxDcq86
— CZ 🔶 Binance (@cz_binance) January 24, 2023
IMF calls for coordinated global regulation between countries
According to Nobuyasu Sugimoto and Bo Li, IMF executives, countries should consider regulating cryptocurrencies on five points.
First, regulators must supervise cryptocurrency exchanges by licensing, registering and authorizing their activities. Second, multi-function platforms must undergo prudential regulation to mitigate risk.
The third important point for regulators concerns the supervision of stablecoin issuers, who cannot operate without rules.
Fourth, executives believe that regulated institutions that want to deal with cryptocurrencies should be subject to strict scrutiny. At this point, the IMF is urging regulators to pay attention to the rules of the Basel Committee on Banking Supervision, which is already addressing the issue of cryptocurrencies.
Finally, Sugimoto and Li argue that countries coordinate their regulation globally, as national regulations can hardly grasp the nature of cryptocurrencies.
“Ultimately, we need robust, comprehensive, and globally consistent crypto regulation and oversight. The cross-sectoral and cross-border nature of crypto limits the effectiveness of uncoordinated national approaches. For a global approach to work, it must also be able to adapt to a changing landscape and risk perspective.”
For Binance’s CEO, when regulators come up with their rules, market integrity improves.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.