CZ: Because of Binance’s Size, Regulators Put It ‘Under the Microscope’ to a Greater Degree

CZ commented on the state of the crypto industry and market in an interview with Bankless on May 29. CZ discusses the recent controversies surrounding the company. CZ stated that mainstream news sources tend to report negatively on cryptocurrencies, and Binance in particular attracts FUD because of its sheer size. Despite the FUD, Binance aims to be “as transparent as possible” and stated that Binance currently provides proof of reserves reporting. CZ acknowledges that there are limits to transparency. He believes that if Binance discloses all its wallet addresses, it will expose Binance’s suppliers and partners, thereby compromising privacy and security and affecting competition. Due to Binance’s size, regulators have put it “under the microscope” to a greater extent, CZ said. In terms of regulation, the crypto industry is becoming less competitive and more cooperative. CZ also noted that Binance considered acquiring a bank at one point, but found that would require extensive compliance with local regulations. Banking is costly, risky and often not very profitable.