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Binance’s CEO, Changpeng Zhao, has noted that the recent crackdown on crypto ads will not have a huge impact on demand. Various regulatory bodies have cracked down on advertisements related to the cryptocurrency sector.
Crypto ad crackdown will not affect demand
Speaking during an interview with CNBC, Zhao noted that limiting the marketing strategies used by crypto firms will stifle the sector’s growth, but it will not affect the current demand. He also noted that this crackdown could be attributed to this rising demand for cryptocurrencies.
Singapore recently stated that firms operating in the crypto sector were barred from advertising in public spaces. Crypto firms that are regulated in the country or awaiting regulatory approval have been confined to advertising in their native websites and mobile applications.
However, according to Zhao, this restriction will not have a major effect on the sector, given that bans on crypto ads have existed before. He pointed out to Google and Facebook that they were previously reluctant to accept crypto-related ads. He also noted that ads on public transport services “never work that well anyway.”
Zhao addresses crypto regulations
Binance will be shutting down its headquarters in Singapore to comply with the local crypto regulatory framework. The exchange is currently winding down its operations in the country, and it is expected to stop its operations next month.
However, he noted that Binance would still consider reentering the Singapore market with a new crypto regulatory framework. The exchange was also looking towards other parts of the world to set up its new headquarters.
According to Zhao, many countries lacked a crypto-specific framework. He noted that Binance was working with various governments worldwide to set up a clear crypto regulatory framework. He noted that no country had a comprehensive framework to address the broad nature of the cryptocurrency market.
The majority of crypto regulations focus on payments services, and they mainly require compliance through KYC and AML processes on centralized exchanges. However, these regulations failed to address issues such as decentralized finance (DeFi), NFTs, the metaverse and other sectors in the broader crypto space.
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