CZ vs. SBF: How Does the “Battle of Crypto Titans” Impact the Future of Exchanges?
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Was there a winner in the “Battle of Crypto Titans”? In the book “Infinite Storm: The Rise and Fall Symphony of FTX Empire” that chronicles the FTX story, author Michael Louis describes the attitudes of FTX and Binance, two exchanges, towards “regulatory compliance.” He writes, “Binance is like the bully in class, while FTX’s unique ideas are like the oddball.”
Going back to 2021, the book mentions that SBF believed that obtaining a license and complying with regulations would eliminate non-compliant competitors, while CZ, the founder of Binance, turned a blind eye to new regulations. Winston, Co-founder and Chief Revenue Officer of XREX, mentioned in this episode that the two individuals were not completely opposed in their regulatory attitudes. In the battle of offense and defense in the market, the oddball might really be an oddball, but who the bully is remains to be seen.
Winston believes, “The essence of the law is to restrict human behavior, while technology changes human behavior.” Regulatory risks are challenges that the startup industry must bear.
With the establishment of the Virtual Currency Association, Taiwan officially entered the era of regulation in 2024. Winston, the Vice Chairman of the Association, observed that the regulatory agencies in Taiwan have a high level of understanding of the industry. “They (regulatory agencies) absorb new knowledge quickly, but they do not overly trust the industry.”
The overall development is like a small poem, although the speed may be slow, it can steadily and leisurely develop.
In the era of regulation, centralized exchanges will gradually embrace regulation. Operators who first comply with the rules of the game, achieve compliance, and obtain licenses can build a “moat” in business competition. On the other hand, regulation will also stimulate the rapid development of the “decentralized” market.
In this showdown described as the “bully” and the “oddball,” there may not be a true loser or winner, and this kind of competition and cooperation will continue to unfold.
Winston analyzes that the future development of exchanges will see the coexistence of decentralization and centralization, each with its own characteristics and advantages. As we enter the era of Bitcoin for everyone, when everything has order and clear rules to follow, centralized exchanges will leave the wild west era, and regular troops and large institutions will gradually enter, moving towards a more institutionalized direction.
Web3 Going West
Hosted alternately by Wayne Huang and Winston Xiao, Co-founders of XREX Exchange, and Yoyo Yu, Senior Director of Corporate Communications at XREX Group, Web3 Going West brings you an understanding of the concept of decentralization and a comprehensive view of the Web3 world from various perspectives.
Summary of this episode
In terms of compliance, what are the epoch-making meanings and impacts behind the diverging thoughts of CZ and SBF in 2021?
Who is the “bully”? Who is the “oddball”? It’s hard to say.
How do laws restrict human behavior and technology change human behavior? How do operators and governments negotiate their relationship?
Can “landing in various markets” build a competitive moat?
What is “regulatory risk”? How should exchange operators control it?
The great showdown between centralization and decentralization! What will exchanges look like in the future?
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Music Source
MusicbyAden – Earth
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Earth by MusicbyAden is licensed under CC BY-SA 4.0CC
This segment is a joint collaboration between XREX and “WEB3+” under DIGITIMES.
