USDC’s Circle Not Behind Action On BUSD News

In the wake of the regulatory action against the issue of BUSD and the involvement of Binance and Paxos in it, Binance CEO CZ spoke to the audience in an Ask Me Anything event on Tuesday. He said Binance lost access to banking partners due to restrictions from regulators, due to which the USD withdrawals had to be paused. With restrictions on BUSD in the US, CZ believes there will be room for more dollar based stablecoins and Binance will support them.

Tight Crypto Regulation

Talking about the stringent guidelines for crypto space in many countries, the Binance CEO said it was natural for governments to first tighten policy around new inventions. He said the first draft would always be overly tight before iterations will lead to loosening in the regulatory framework. CZ said Binance was working with many regulatory bodies and global industry associations about web 3.0 regulation.

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CZ also spoke about the recent regulatory action involving the BUSD stablecoin. Reports suggested that USDC issuer Circle had informed the New York State Department of Financial Services about the alleged irregularities in crypto reserves to support BUSD. The Binance CEO said he likes to believe Circle did not do so as it would hurt them too.

India Crypto Regulation

CZ welcomed India’s move to have a common regulatory framework for crypto regulation among the G20 nations. He said having any regulatory framework is better than not having any clarity. The country’s administration, which currently holds the G20 presidency, is actively in discussion with the member countries about regulating the web 3.0 space.

In a welcome move that indicates giving enthusiasts freedom to operate in the space, the country’s finance minister Nirmala Sitharaman recently said crypto predominantly involves a lot of technology, “it’s 99% technology.” Work is on to achieve a standard operating procedure, she said.

“Having clarity is more important that not having any guidelines. In many markets, there are no guidelines but regulation is done by force. However, having guidelines doesn’t mean all of that is good.”

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Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @BitcoinReddy and reach out to him at [email protected]

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