The CEO of the world’s largest crypto exchange is calling for regulations to be enforced in the fast-growing industry.

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Binance CEO Changpeng Zhao has spoken about the need to set strict rules on the market. This week, the company released a list of “10 Fundamental Rights for Crypto Users” that they hope will spark conversations between policymakers and regulators.

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“This year, most of the regulators around the world are watching crypto carefully, and many of them are communicating with us,” Zhao told the Associated Press. He also said that he and the rest of Binance think it is “the right time” to talk about regulations.

“We think it’s important for industry players to have a seat at the table,” he continued. “And we also realize that some rules, if they are created in a vacuum, may not have practical considerations in how to apply them, and they don’t apply very well.”

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The scrutiny of the cryptocurrency industry has intensified in recent years. This is mainly because the industry has become more mainstream. Last week, bitcoin hit a record high of around $68,991. Cryptocurrency has become so mainstream that the Staples Center will be renamed Crypto.com Arena in December. Other industries, such as ride-sharing, encouraged regulations before becoming significant companies within the sector.

“Right now, we don’t have enough investor protection in crypto,” said Securities and Exchange Commission chairman Gary Gensler, who called the industry the equivalent of the Wild West.

“This asset class is fraught with fraud, scams and misuse in some applications,” he said. “There is a lot of hype and spin about how crypto assets work. In many cases, investors are not able to obtain rigorous, balanced and complete information.”

For more reporting from the Associated Press, see below.

The company acknowledges that crypto platforms have an obligation to implement procedures to protect users and prevent financial crimes, as well as a responsibility to work with regulators and policymakers to set standards to keep users safe. Is.

The call for regulation may seem odd for an industry whose popularity recovered in part because it wanted to operate outside the heavy hand of governments and other authorities. But Zhao says more regulation is inevitable for the industry, and it allows his company to play a role in the discussions. It can also help attract people who are still hesitant to get into crypto.

Big businesses, professional investors and even the government of El Salvador are all buying in, even as critics struggle to see the value of digital currencies created by non-governments.

The move could also prove prudent if Binance’s US business eventually tries to sell the stock on a US exchange, something Zhao expects to happen in the next few years. One competitor, Coinbase, has amassed a market value of nearly $74 billion on Wall Street since its initial public offering this spring.

Such funding opportunities have attracted more new investors into the eyes of crypto as well as regulators.

Analysts said they expect Binance to agree to report transactions to US regulators looking for activities involved in terrorism financing, among other things. One of Binance’s “fundamental rights” also calls for strict regulations on marketplaces that offer “derivatives and leveraged instruments”, which can be lucrative but very risky trades for investors.

Zhao said most regulators around the world are focusing on “know your customer” rules, where financial companies attempt to verify the identities of those who use their services. They are also important on safety for consumers.

But even there, “there are different interpretations and different meanings for these very simple words in different countries,” Zhao said. For example, in the US, the emphasis of anti-money laundering is on blocking financing for terrorism, while Chinese regulators are looking for people moving money out of the country.

Campbell Harvey, a finance professor at Duke University who recently wrote a book titled DeFi and the future of finance, said regulators are playing catch-up with complex and fast-moving technologies, while trying to find a balance between protecting investors and eliminating innovation or driving it to other countries.

The bets are on to fix this. Now that there is uncertainty about what regulation will ultimately look like, some large institutional investors such as pension funds are being kept out of crypto. And that’s where the opportunity for even more funding for the industry lies.

Given all the complexities, Harvey said the best solution might be for the US government to create a new agency to oversee cryptocurrencies and the ecosystem around them, rather than relying on a combination of regulatory bodies.

“It’s complicated, and it doesn’t fit into many common regulatory models,” he said.

Zhao, who said the only cryptocurrencies he owns are Bitcoin and Binance Coin, said that some parts of the cryptocurrency world look like securities, while others look like commodities or currencies. And the ecosystem is growing day by day as people can create new tokens with just a few clicks of the mouse and keyboard.

He compared it to the early days of the Internet, when people were trying to figure out what kind of media it was. is this radio? TV? anything else?

“There may be a tendency for people to view crypto as a single asset, which I think is a bit misleading,” he said. “Crypto is a fundamental technology that can improve upon many traditional asset types.”