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CZ predicts a dire future for traditional institutions not embracing crypto

Binance CEO reacts to SEC notice against Paxos

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TL;DR

  • Despite the hesitance of traditional actors to get involved with crypto at present, CZ suggests that their choice might come back to haunt them in two decades’ time.
  • CZ believes that the actions of actors like Sam Bankman-Fried have negatively set back the industry by a few years.

As traditional financial institutions move to reduce their exposure to cryptocurrencies in the wake of the collapses seen in 2022, Binance CEO Changpeng “CZ” Zhao believes this could potentially have a detrimental effect on these traditional-finance players.

The downfall of crypto companies such as FTX and Terraform Labs terrified investors and caused traditional investors to rethink their strategies for entering the crypto industry. Though many have been reluctant to join in on crypto adoption, CZ believes that if it continues over time, those who stay away now might miss out later.

Also, CZ predicts that in the next decade or two, traditional financial institutions that are slow to adopt crypto technologies will be significantly behind their peers regarding adoption. He noted that the lack of crypto adoption may have existential implications for traditional financial players in 10-20 years.

CZ, in addition to other crypto entrepreneurs, believes that the actions of actors like Sam Bankman-Fried have negatively set back the industry by a few years. He declared that regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing.

CZ’s long-term bet on the determination of those with pessimistic views about crypto was supported by investors recovering from their traumas in 2022. The optimistic attitude has been sustained due to Bitcoin prices gradually ascending from the $15000 range to over $23000, signifying an ongoing bull market run.

Addressing the increasing allegations of insider trading, Binance has taken a firm stance and declared zero tolerance. Per their spokesperson, all employees must refrain from investing for 90 days, while Binance’s leaders must report any trades they make quarterly. This is an improvement over 2018’s policy which only imposed a 30-day wait period before making investments. With this more rigorous approach, Binance hopes to restore trust in its platform and uphold fairness amongst traders.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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