As digital currencies become more widely used, Binance Chief Executive Officer Changpeng Zhao said on Friday that regulation of the crypto sector, as compared to hostility, is a preferable choice for international governments.
Following the failure of multiple platforms, which culminated in the bankruptcy of FTX currency exchange earlier this month, regulation of crypto currencies has come into sharp focus.
“I think most governments now understand that adoption will happen regardless. It’s better to regulate the industry instead of trying to fight against it,” Zhao said, speaking at a Binance event in Athens.
When FTX, a cryptocurrency exchange, applied for bankruptcy protection in the US on Nov. 11 after users withdrew $6 billion in three days, the shadowy world of cryptocurrencies came under the spotlight.
An estimated 1 million creditors are now dealing with losses equivalent to billions of dollars as a result of the collapse.
Zhao nonetheless said he expected a recovery in the sector. “(This year) was a very nasty year, the last two months too much has happened. I think now we see the industry is healthier… just because FTX happened it does not mean that every other business is bad, ” he said.
Zhao said he expected countries, especially those without their own currency, would begin adding digital assets like Bitcoin to their reserves in the future.
I believe the small countries will start first, he remarked.