As traditional institutions proactively reduce exposure to cryptocurrencies in reaction to the 2022 ecosystem collapse, Binance CEO Changpeng 'CZ' Zhao believes this move could have a negative impact on such traditional financial players.
The collapse of major crypto platforms such as FTX and Terraform Labs not only reduced confidence among investors, but also forced the traditional market to reevaluate their strategies for entering the crypto ecosystem. While the reluctance of traditional players is an impediment to crypto adoption in the near term, CZ argues that the decision could backfire in the next two decades.
as they really hampered traditional financial players from adopting the technology, and are likely to push them further down the adoption curve, which may have existential implications for them 10-20 years from now. ♂️
—CZ Binance (@cz_binance) January 27, 2023
According to CZ, over the next 10 to 20 years, traditional financial players who choose to slow cryptocurrency adoption will fall far behind the adoption curve, stating that:
"(The lack of crypto adoption) may have existential implications for (traditional financial players) 10 to 20 years from now."
CZ, along with other crypto entrepreneurs, believes that the actions of players like Sam Bankman-fried set the industry back a few years as he said, "regulators will scrutinize this industry much, much harder, which is probably a good thing, to be honest."
CZ's long-term bet on the fate of cryptocurrency naysayers was supported by investors slowly beginning to recover from the traumas of 2022. The overall positive sentiment is supported by a slow but steady uptrend, which has brought back to Bitcoin (BTC) prices from the $15,000 range to well above $23,000 at the time of writing.
Related: Binance Charity to Provide Over 30K Web3 Scholarships in 2023
Between growing accusations of insider trading, Binance informed Cointelegraph about a zero tolerance policy. According to the spokesperson:
“Every employee is subject to a 90-day hold on any investment they make, and Binance leaders are required to report any trading activity on a quarterly basis.”
In 2018, Binance's insider trading prevention policy included a 30-day period, which has now been extended to a 90-day period.
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