Cryptocurrency entrepreneurs should consider moving to a country with favorable regulation of the bitcoin industry. This was stated by Binance CEO Changpeng Zhao during a speech in Twitter Spaces.
He considers Dubai (UAE), Bahrain and France to be such jurisdictions.
“If you are serious about your project, moving to a new country might not be a bad thing,” Zhao said.
The advice from the head of Binance came against the backdrop of tightening regulation of the industry by the US authorities. In particular, we are talking about the investigation launched by the Department of Financial Services of the State of New York against the infrastructure company Paxos. The regulator later ordered the firm to stop issuing the Binance USD (BUSD) stablecoin. She also announced her readiness to sue Paxos SEC.
Changpeng Zhao pointed to the uncertainty and grayness prevailing in the industry, suggesting to actively interact with regulatory authorities.
“Most regulators at least say they are ready for dialogue, but I’m not sure that all entrepreneurs have this access, especially when it comes to startups without a reputation,” said Binance CEO.
Zhao added that newcomers to the industry will definitely need legal advice in order to “not cross any of the red lines” set by regulators.
Uniswap founder Hayden Adams also joined in the criticism.
Embarrassing to watch the United States fumble the ball so hard on crypto
The incentive for innovators and businesses is to go abroad
It’s like if 30 years ago the government saw the internet and said “no, don’t do that here”
— hayden.eth 🦄 (@haydenzadams) February 13, 2023
“It is a shame to look at the attempts of the United States in matters of the cryptosphere. Innovative companies get an additional incentive to go abroad. It is as if 30 years ago the government banned the Internet from developing in the country,” he wrote.
Recall that in early February, the SEC launched an investigation into a possible violation of securities laws by the Kraken cryptocurrency platform when offering products to US users. As part of the settlement, the exchange agreed to terminate the staking program and pay a $30 million fine.
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