The chief executive officer and the chief information officer for Three Arrows Capital and the co-founder of Sensus Markets, Su Zhu states that there is no need for acquiring legalization for an exchange or a crypto phenomenon to get known as a secured platform around the crypto fanbase. The Binance exchange has managed to pull off gaining the trust of the users without directing towards the prior mentioned tactic even a stint of it. The reason the exchange has managed to grow so rapidly and prosperously, though very little regulated by any official and incumbent authority is that the users trust the exchange more than they do any government protocol that is set to keep the exchange in check. BlockPublisher managed to extract some words from the co-founder and the corporate officer over the very discourse.
An exchange like Binance has turned out to be the most trusted exchanges for the crypto users looking for transactions. This has not been a result of excessive regulation rather it is a fruit of the trust of the people over the exchange. Just so you know, you cant build trust by acquiring govt licenses/rubber stamps.
Binance, a product of Changpeng Zhou, has been effectively operating so as to facilitate the users as they can exchange multiple currencies and several crypto coins. The assets are transparently operated and the funds are duly dealt with which is the sole reason the customers and the actual users have clear blind trust over the already established exchange protocols.
The government permits and call to operate freely from the incumbent authorities sure is a decent thing to be involved in but as Zhu states, the entire reason does not solely stick to this feature a crypto setup can boast. It is the collective outcome from the crypto venture that can land the venture to prosperity or merely deep down the waters.
Zhu is of the view that people are more reluctant to be fully relying over the government protocols rather than the native crypto developers. This is due to the fact that the incumbent authorities are being blamed for any crypto related crisis fully or just for having a part in it indirectly. We have included the follow up that Zhu has to offer.
Yeah liquidity has tended to aggregate in the venues of least govt approval as opposed to the most. (Binance, Bitmex). Which is prob contrary to what a lot of the picks&shovels crowd expects.