Binance CEO Responds To Offshore Regulation Comments By Kraken CEO
- The Kraken CEO highlighted the inconsistency in the regulation of offshore crypto entities by U.S regulators.
- CZ took issue with Powell’s “self-centered” categorization of on-shore and off-shore crypto entities.
Binance CEO Changpeng Zhao responded to the recent comments made by Jesse Powell, CEO of rival crypto exchange Kraken, regarding the treatment of off-shore crypto entities by regulators in the United States.
In a Twitter thread shared earlier today, CZ pointed out that the term “off-shore” was often used by Kraken’s CEO. According to Zhao, the term is overly narrow-minded and is unhelpful to the development of the crypto industry.
Center-staging Jesse Powell’s categorization of certain crypto firms as off-shore, Changpeng Zhao argued that the on-shore entities hadn’t fared any better. The Binance CEO referred the predicament of FTX US, the American arm of the Sam Bankman-Fried collapsed crypto empire, and pointed out that fraud had been committed despite regulation by U.S agencies.
“Drawing a distinction between ‘on-shore’ and everyone else is self-centered and somewhat arrogant. Everyone is ‘on-shore’ from their own perspective. “We are better than everyone else” is not a panacea towards building a better industry,” CZ tweeted.
Changpeng Zhao acknowledged Jesse Powell’s contribution to the crypto industry and urged him to embrace diversity and openness and engage in productive and positive efforts in the interest of a better industry and a better world.
Jesse Powell’s comments on off-shore regulation came last week after Caitlin Long, the CEO of Custodia Bank, called out American lawmakers and regulators for their unguided crackdown on the crypto industry. Powell responded to Long by sharing his frustration with the attitude of regulators against U.S regulated crypto firms, as compared to unregulated “off-shore” entities.