The traditional financial industry is clearly shocked by the weakness of the crypto world in 2022. In response, various parties are trying to lower their exposure to the industry. Binance CEO Changpeng Zhao is convinced that this is a mistake and may have a negative effect on these parties in the future.
The confidence is gone
It should come as no great surprise that confidence has disappeared for a while. The implosions of companies such as FTX and Terraform Labs are of course not very hopeful. In that respect, it is logical that confidence is gone from various quarters and that the industry must slowly rebuild it.
While that is currently slowing down Bitcoin and crypto adoption, Changpeng Zhao says it is not smart for traditional players to stay out of the market. According to Binance’s flamboyant CEO, that decision could cost them in 10 to 20 years.
Although CZ admits that entrepreneurs like Sam Bankman-Fried placed the industry a few years back in time. “Legislators will rightly scrutinize the industry, which may even be a positive development if I’m being honest,” Changpeng Zhao said clearly.
Binance’s policy
There are some rumors that Binance employees engage in insider trading. In principle, they know before the rest of the market is aware of possible listings on the exchange platform. On that front, the exchange platform therefore applies a zero-tolerance policy. As soon as they find out that someone was trading insider information, they immediately lose their job.
“Every employee must hold an asset they buy for at least 90 days and Binance executives must share their trading activity every quarter,” a Binance spokesperson told Cointelegraph. In 2018 it was still a period of 30 days, but this has now been extended to 90 days to build in even more certainty.