AMA: CZ at Hong Kong's Web3 Carnival on CeFi vs. DeFi, Mass Adoption, and Regulation

Binance CEO Changpeng Zhao discussed Binance's vision for connecting CeFi and DeFi, his ideas on how blockchain may become more widely used, and the current situation of regulation in the cryptocurrency business during an AMA session on Wednesday that was held during Hong Kong's Web3 Carnival.
"CeFi exchanges can be incredibly transparent if they have strong proof of reserves and blockchain-based verification methods, like Binance does. When queried about the dependability of CeFi platforms, CZ said that it was really more transparent than traditional financial service providers.
"While Web2 and DeFi platforms might be more user-friendly because they don't require KYC, many users prefer to use CeFi platforms because they want security," the CEO continued. In this regard, convenience and maintaining security are mutually exclusive.
 

But CeFi isn't only against DeFi; CZ maintains that he wants Binance to act as a link between the two.
In response to a question about what he thought would be necessary for blockchain to become widely used, CZ stated that "the most important thing is to provide an environment for users to try out," adding that "reforming the traditional market will be the next driving force for the mass adoption of blockchain."
The CEO concluded by making the following statement regarding regulation: "Regulators need to let the business flourish first and regulate when players behave badly. [...] Understanding the crypto sector is necessary for regulation, but the majority of regulatory bodies lack this information, hence the initial iteration of regulatory legislation will typically be overly restrictive.
 

Binance regularly communicates with regulatory bodies in several nations, including Hong Kong.
The remarks come as Bloomberg reports that Hong Kong's ZA Bank, the capital's largest virtual bank by assets, is getting ready to offer cryptocurrency account services. According to Bloomberg, this is part of a larger effort by the city-state to position itself as a hub for cryptocurrency finance.