Zhao Changpeng Interview | Brief comments on recent market views, regulatory developments, and the possibility of France as a global headquarters

Binance founder Zhao Changpeng provided a clearer roadmap for the future in an interview with French media. After providing 100 million euros in funding to support the development of the blockchain and crypto ecosystem in France and Europe earlier this month, he hopes to obtain a compliant status as a digital asset service provider in France by 2022, making France a suitable choice for Binance's future headquarters.

In addition to revealing the possible headquarters plan, Zhao Changpeng also answered many questions in the interview.

Bitcoin ETF's Contribution to the Rise Is Limited

Regarding the reasons for the market rise, he stated that there are many possibilities, but no one knows the real reason. The futures ETF "indirectly supported by Bitcoin" has limited contribution to the overall increase. He believes that the continuous reduction of supply is the long-term factor for Bitcoin's rise:

There are also some external favorable factors, such as central banks promoting large-scale stimulus plans to cope with the economic crisis under the pandemic, leading to inflation and a low-rate environment. The importance of these factors cannot be precisely measured, but they will help boost the coin price.

Chinese Regulatory View

Zhao Changpeng briefly stated that the Chinese Communist Party accepts blockchain technology but holds a negative attitude towards cryptocurrencies. In practice, the public can legally hold cryptocurrencies like Bitcoin, but the Chinese Communist Party does not want exchanges, ICOs, mining farms, and other businesses to operate within the country.

European Regulation

When Binance was established four years ago, Zhao Changpeng pointed out that regulatory agencies were quite busy at that time and did not have a regulatory framework. However, the situation has changed since then. He heard that France is the most advanced financial center for cryptocurrency regulation and hopes to communicate with the UK Financial Conduct Authority (FCA).

Regarding the FCA's order to cease services at the end of June, he stated:

At that time, we had applied for the relevant authorization to trade cryptocurrencies in the UK, but we could not answer some simple questions, such as "Where is your headquarters?" because we didn't have one. They requested us to stop operations in the country, and three weeks later on 6/26, the FCA announced that Binance had no authority to operate in the country.

Zhao Changpeng emphasized that Binance has regained authorization, and on 8/21, the FCA also stated that Binance had met all requirements. Currently, they maintain a good relationship with the FCA.

Establishing Headquarters in Europe?

Binance operates without a headquarters, but this has not gained regulatory favor. Zhao Changpeng believes that the cryptocurrency industry needs regulation. Therefore, they plan to establish headquarters at various levels globally and regionally. He stated:

The crypto business still lacks international licenses, which means Binance needs to gradually obtain licenses from countries/regions. We hope to obtain a PSAN (Provider of Services for Digital Assets) license within six months to a year, and "France" will soon be a suitable choice for the regional and global headquarters.

Zhao Changpeng also revealed that regulatory agencies have very clear expectations for Binance, hoping that they will establish headquarters in France. However, they will not allow Binance to take advantage just because it is a major player in the market.

Meta's Brief Comment

Meta has 3 billion users worldwide. Zhao Changpeng believes that even if only 1% of Meta's users convert to metaverse products, there will be 30 million new users. Meta will definitely integrate cryptocurrencies, which is a good way to involve the public in the crypto field. He stated:

Facebook is advancing the development of the crypto industry through all crypto-related projects, whether it's Diem stablecoin or Novi wallet.

Market Comment

Will Bitcoin be replaced by other cryptocurrencies? Zhao Changpeng pointed out that in the short term, it can continue to maintain its dominant position. Bitcoin is the most decentralized currency, with no founding team, and the inventor remains anonymous, while Ethereum and BNB have known founders.

However, the possibility of Bitcoin being replaced in the future is not entirely unimaginable, just as Facebook could be replaced by new social platforms. Anything is possible.