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Crypto’s Richest Billionaire Says Banks Should Be More Involved With Digital Asset Industry

The CEO of the world’s largest crypto exchange platform is advocating for banks to play a larger role in the development of digital assets.

Binance chief executive officer Changpeng Zhao says banks serve an important function in the crypto ecosystem despite the rivalry that has raged between the two financial sectors for over a decade.

“Banks vs crypto has been raging since Satoshi published the Bitcoin whitepaper in 2008. The reality is banks provide a critical role in the crypto ecosystem. We need them to keep driving adoption, which is why we support their increasing involvement in the development of crypto.”

Zhao says the decision by the Basel Committee on Banking Supervision (BCBS) to seek opinions on the extent to which banks can have exposure to crypto assets is positive for the digital asset industry. BCBS’s primary function is setting standards for the regulation of banks across the globe.

“The Basel Committee on Banking Supervision issued a public consultation on the prudential treatment of crypto asset exposures, with detailed requirements to allow banks to hold a limited inventory of crypto on their balance sheets.

Based on the requirements, likely only a small number of crypto assets will qualify. Regardless, legitimizing banks’ holding of crypto assets is a step in the right direction. This is progress.”

On crypto regulation, the billionaire says “sensible and consistent regulatory frameworks” can stimulate growth in the industry.

“At Binance we welcome regulations that are globally consistent, enable responsible innovation, protect users, and give them choice. As an industry, we can build trust through sensible and consistent regulatory frameworks, which will grow this space long term.”