Changpeng Zhao: Singapore Crypto Cautious After FTX Crisis

Changpeng Zhao: Singapore Crypto Cautious After FTX Crisis

After worldwide digital asset developments, Singapore, known for its crypto-friendliness, has become more conservative.

During a conference in Singapore, Binance CEO Changpeng Zhao made remarks.

Zhao observed that Singapore had adopted a more cautious stance on cryptocurrency regulation following the collapse of FTX, although it still maintained its overall crypto-friendly stance.

He highlighted that the mid-year crypto regulations introduced in Hong Kong only allowed a limited set of tokens for retail investors to trade, contributing to a trend of stricter crypto regulations that made many traditional financial institutions hesitant to engage in cryptocurrency-related services.

Nevertheless, Zhao emphasized the emergence of new entrants in the crypto industry, indicating sustained interest and expansion in the sector.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) initiated a legal action against Binance and CZ, alleging multiple securities violations related to the BNB token and BUSD stablecoin.

This lawsuit had significant repercussions, resulting in a decrease in market share for Binance’s stablecoin.

In response, Binance.US, a distinct entity serving the U.S. market, contested the SEC’s requests for depositions and additional discovery, asserting that there was no evidence presented of misappropriation of customer funds.

The changing regulatory environment and the actions taken by major entities such as Binance underscore the ongoing transformation and challenges within the cryptocurrency industry.

Singapore’s nuanced approach, which balances regulation and innovation, mirrors the broader global discourse surrounding digital assets.

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