- Binance CEO Changpeng Zhao said the FTX collapse influenced crypto regulations in Singapore.
- Zhao stated that traditional financial institutions are reluctant to partner with crypto companies because of regulations.
- Binance continues to face regulatory woes, with the company’s arm in the US announcing layoffs and its president departing.
Binance CEO Changpeng Zhao said the regulatory atmosphere in Singapore around crypto became more conservative after FTX’s collapse, according to a Bloomberg report. He added that similar measures are being taken in the neighboring region of Hong Kong.
Crypto regulations across the world increased following a slew of institutional collapses and bankruptcies. Since then, several countries have rolled out legal regimes for crypto operations in their countries.
In particular, Zhao mentioned crypto regulations in Hong Kong that only allow a limited number of tokens for trading by retail investors. The regulation has had a significant effect despite being introduced some months ago.
According to Zhao, the tighter regulations have made it difficult for crypto entities to partner with traditional institutions. Furthermore, he said it discouraged financial institutions from offering cash for crypto services and vice versa. Despite these challenges, he stated that institutions are still looking into the crypto ecosystem.
Meanwhile, Binance has seen its regulatory woes increase multifold since the start of the year. Notably, the largest crypto exchange in the world has faced intense regulatory scrutiny, exacerbated by institutional collapses in the crypto ecosystem, since last year.
The company has also been the subject of growing and widespread FUD. As a result, its digital trading volume has declined, and the company has lost out on some partnerships that forced the early exit of some of its products.
While the company’s operations in most countries have continued unhindered, its U.S. arm – Binance US – appears knee-deep in operational instability. Yesterday, the company’s president, Brian Shroder, stepped down amid layoffs by the company.
Earlier this week, the company announced plans to cut more than 100 employees, close to one-third of its workforce in the country. This will be the second job cut by the company this year.
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