Binance CEO Deng Weizheng discusses the global cryptocurrency market
2024 is a landmark year for the cryptocurrency market. When Binance CEO Richard Teng gave a speech at the TOKEN2049 event in Singapore, he shared Binance’s development trends in the global market and the challenges it faces. challenges.
Binance was established in July 2017, but the rules and regulations in various countries were not clear at that time. By 2024, about 1/3 of the world's regulatory agencies will begin to regulate cryptocurrencies, making 2024 a major milestone for the cryptocurrency industry.
In addition, the United States approved Bitcoin and Ethereum ETFs this year, and subsequently other countries such as Canada, Australia, Hong Kong, and Brazil also began to show interest, changing the attitude and atmosphere of the market.
Deng Weizheng pointed out that Binance, as one of the world's largest cryptocurrency exchanges, must adapt to the diverse regulations on cryptocurrency in different countries. However, because countries have different definitions and regulatory rules for encrypted assets, for example, Singapore will treat them as digital tokens, while other countries will treat them as virtual assets or private property.
Therefore, to comply with the regulations of various countries, exchanges need to adjust their operating strategies according to the regulations of different regions.
Facing increasingly stringent regulatory requirements, Binance not only strengthened the size of its internal compliance team, but also invested a lot of resources in compliance work. Deng Weizheng revealed that Binance’s compliance expenditure in 2022 will reach US$213 million, and the budget for 2023 will be higher, showing that the company attaches great importance to compliance work.
Rapid expansion of global markets
Deng Weizheng said that Binance currently serves 225 million users around the world and continues to expand its market territory. Binance has recently received regulatory approval in Indonesia and India, both of which are among the world’s largest potential markets.
Deng Weizheng emphasized that in developing countries where financial services are relatively unpopular, cryptocurrency can become an important tool to fill the financial gap and provide year-round financial services for those who cannot use the traditional banking system.
In addition, maintaining user trust is also a key to operating an exchange.
In order to protect user assets, Binance became the first exchange to launch the User Fund Insurance Fund (SAFU), and through anti-fraud mechanisms such as detecting malicious activities and alerting users, it helped users recover US$2.4 billion in potential losses this year.
Deng Weizheng said, “For small and medium-sized enterprises, the cost of compliance expansion has indeed become a barrier to entry, and Binance is large enough to bear these costs.”
In addition, recently after Binance launched multiple meme coins, discussions about the "Binance Rat Cage" began to circulate in the online community. Not only did the founder He Yi rarely post a long post on the community, he actually expressed this. In response to the incident, Deng Weizheng also clarified to users again during the TOKEN2049 event and emphasized that Binance will be responsible for the listed tokens and ensure that the standards for bringing coins to the shelves are strictly enforced.
As for the future development of the cryptocurrency market, Deng Weizheng expressed optimism about 2025.
He pointed out that the global encryption market is gradually maturing. With the United States approving cryptocurrency ETFs, other countries such as Canada, Australia, Hong Kong and Brazil have also begun to follow suit. These actions are driving the entry of institutional investors.
As for the future development of cryptocurrency, Deng Weizheng believes that the combination of blockchain technology and artificial intelligence will become the key driving force for the next stage of the encryption industry.
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