At the recent Token2049 event in Singapore, Changpeng "CZ" Zhao, the CEO of Binance, highlighted the challenges in bringing the next 100 million users into the cryptocurrency space. He underscored the critical role of fiat ramps in the expansion of the cryptocurrency market.
“Today, to be very frank, it's actually fiat ramps,” Zhao said at the event. These services, essential in exchanging fiat currencies like the U.S. dollar for cryptocurrencies such as Bitcoin and Ethereum, have seen a decline in providers due to stringent regulations introduced earlier this year.
"With tightening regulations in the earlier part of this year, we're seeing a lot of traditional institutions that used to provide fiat ramp channels pull away," Zhao said.
Talking about the Singapore crypto market, Zhao said, "Singapore’s approach to crypto became more conservative after the collapse of FTX but the island remains crypto friendly overall."
Tighter regulations generally have prompted many traditional financial institutions to hold back on offering cash to crypto services and vice versa, he added.
“But at the same we are seeing new ones coming up,” Zhao said.
According to Zhao, Binance exceeded 150 million users a couple of months ago.
“We are also seeing 200,000 to 300,000 to half-a-million active users on a weekly, monthly basis,” he added.
Zhao spoke via video link at the Token2049 conference in Singapore with Benzinga in attendance.
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