Changpeng Zhao (CZ) addressed a number of concerns in the latest Twitter space surrounding the potential impact of regulatory compliance policies on the adoption and development of the web3 economy, particularly in Africa.
Adoption and regulatory clarity
CZ suggested that regulatory clarity can make adoption easier and highlighted the potential for faster adoption of technology in regions with a strong need for it.
“I think this technology will be adopted faster in those regions because of the strong need for it.”
CZ also addressed rumors and misinformation (FUD) about Binance, stating that the company holds user assets on a 1-to-1 basis, and that building is the best way to combat FUD.
“We hold crypto reserves and cash reserves 1-to-1. We hold user asset reserves 1-to-1. There’s no amount of FUD; there’s no amount of withdrawals that will put us under pressure.”
CZ emphasized the importance of providing good service to Binance’s users. He mentioned that the company uses an AI bot to handle most inquiries, which is able to resolve 75% of them without human intervention.
“Customer services is super super important. […] Improving customer support is not easy. It just takes time.”
When asked about decentralized finance (DeFi), CZ mentioned that Binance has licenses in 15 countries around the world, including France, Bahrain, and Abu Dhabi. He also stated that the US offers the best banking support for crypto businesses.
CZ also discussed the current state of the NFT market, stating that he believes it is still very early. He did not provide any information on Binance’s plans for NFTs in the near term.
In response to recent rumors and accusations against Binance, CZ denied them and stated that the company has a strong compliance team. Though he promoted the freedom to withdraw:
“People wanna withdraw their funds from Binance, great, they can do that, it’s their freedom.”
CZ also advised against withdrawing funds from exchanges, as people are more likely to lose money when holding it on their own.
“I cannot encourage people to withdraw from exchanges […] I think more people lose their money when holding it on their own.”
Plans for the road ahead
In terms of Binance’s plans for 2023, CZ said that he does not have any big ambitions, and simply wants to ensure that the company’s platforms are solid. He also addressed the issue of people and organizations with an agenda against Binance, stating that he does not know why they have one but believes it may be because they lost a source of revenue due to the FTX collapse.
“There’s FUD everywhere, you know, The Block – which we now understand is pretty much owned by SBF – writes a lot of negative articles about Binance. That’s ok though […] it actually makes us more resilient.”