"Maybe this way can avoid a situation like the FTX crisis from happening again."
Following the continuous bleeding of the cryptocurrency market, Binance's Chief Executive Officer (CEO), Changpeng Zhao (CZ) did not miss out on expressing his opinion on the need for stricter laws against digital assets.
CZ expressed its agreement with the proposal put forward by the International Monetary Fund (IMF) regarding the crypto regulatory scheme.
According to him, it will provide various benefits to investors and businesses that offer digital asset services.
The IMF recently said that companies that provide crypto services such as storage, transfer or exchange must be licensed and registered to avoid any fraud.
As a result, CZ said a crypto market that has strong, comprehensive and consistent regulations is able to support the sustainability of digital assets globally.
However, companies that have various crypto services should be subject to stricter regulations so that each operation can be carried out efficiently and if there are any obstacles then it needs to be reviewed by the authorities.
In the meantime, the producers of stablecoins need to follow the standards set since most investors get them as a store of value, where it will affect the stability of the financial system if they make a mistake.
Overall, CZ is of the view that the crypto market and its users will be better protected when politicians and regulators expand the scope of activities allowed in its digital asset regulation.
