CEO Changpeng Zhao said Binance will be in dialogue with other stablecoin issuers and is skeptical of the claims Circle has alerted the regulator to.
During the AMA Q&A session on Twitter Space last night, Feb. 14, CEO Changpeng Zhao distanced himself from BUSD – the Binance-branded stablecoin that is entangled in regulatory “line”.
Tune-in to our Twitter Space AMA with @cz_binance belowhttps://t.co/bXIztCKdry
— Binance (@binance) February 14, 2023
During the AMA, the Binance boss denied the relationship:
“Binance does not issue BUSD. We have an agreement that allows Paxos to use our brand, but in essence we do not own the coin directly.”
In a tweet on February 13, CZ said:
“Paxos is a company under the management of NYDFS. And BUSD is a stablecoin issued and managed entirely by Paxos;
As such, BUSD will only deflate over time. Paxos commits to Binance that the outstanding BUSD is fully backed by the bank’s reserve assets, and is regularly audited;
Binance will still support BUSD on the platform as usual. Assets are always safe.”
According to CZ, there should be more stablecoins pegged to assets other than USD, such as Singapore’s SGD or Japanese yen… CZ confirmed a stablecoin project pegged to the Japanese yen has contacted Binance. After “parting” BUSD, Binance believes that many other stablecoins will emerge instead and Binance is willing to cooperate with those projects.
The Binance boss stated in his live view that after the Luna and FTX disasters, regulators have become more demanding and many traditional banks have also cut off cooperation with the crypto industry or expressed caution. Binance is no exception when it has lost the hands of some traditional partners, affecting the exchange in a short time.
In response to the rumor that Circle was the one who pulled the strings to downgrade BUSD to NYDFS, the founders of Binance did not believe that Circle did so, because the move was also detrimental to themselves. Binance hopes to continue working with any industry partners.
In addition, Mr. Zhao claims to not own any NFTs, simply because he is not interested in collecting artwork. On the other hand, he emphasized that he still believes in this technology and that is also the reason why Binance often publishes articles about NFT.
On the other hand, the Binance CEO suggested that industry players should consider “relocating” to a country that is friendly to the crypto and digital asset industry, amid the Regulatory agencies are tightening regulations. In which, Dubai, Bahrain and France are the candidates proposed by Mr. Changpeng Zhao.
“If you are serious about your project, moving to a new country is something to think about.”
The above comments were made after New York Department of Financial Services (NYDFS) and United States Securities and Exchange Commission (SEC .)) touching Paxos and stablecoins associated with the Binance brand for a long time. Umbrella denies allegations that BUSD is an illegal security, Paxos still decided to stop new mint BUSD under the direction of NYDFS and ceased cooperation with Binance.
The incident created a wave of panic in the community. In just the past 24 hours, the amount of money fleeing from Binance has increased alarmingly. But the Binance boss continues to see this as FUD, a fire test for his platform.
Last week, the SEC ordered the Kraken exchange to stop offering staking services and impose a $30 million civil penalty.